The problem of productivity is further compounded when more than one measure is available for measurement of an output or an input. This is known as true banking. Banking is a service industry engaged in providing a wide array of services like
• Acceptance of deposits
• Extension of credit
• Remittance of funds
• Collection agency
• Conduct of foreign exchange business
• Providing a safe custody for money and gold and so on.

This makes identification of output a very difficult option. It further complicates the problem when a bank in the United States operates with a large number of non-economic objectives also. It poses many conceptual and measurement problems. Often, productivity and profitability have been used in most of the banking studies in the same sense.

But profitability is the product of productivity and price recovery (Kremin, 1982). As compared to profitability, the volume of business at both the micro and macro-level has become an important representative of productivity. This argument is based on several points:
a) Banks perform diversified functions other than just acceptance of deposits and lending advances
b) Profit is subject to fluctuations due to a variety of causes and
c) A government owned bank is often engaged in what we may term as social banking

New banks like the LoanMax started by rod aycox have managed the problem of productivity in a professional manner since they are not weighed down by unethical problems often faced by the government owned institutions.

I would have thought productivity and true banking would be sending out evil bank charges, counting them as profit, handing out the profit in bonuses, so causing a banking collapse when people aren't so compliant as to pay them. Its not the official line.

Its debatable as to whether the police should accidently let the protestors through. Like alleged Bruce Grobellar. The morality of stopping the protestors is questionable when you weigh up some severely done in bankers - which would to some degree lessen the problem - with the overall much worse, in human cost, alternative.

Both the Labour and Conservatives have multi million pound overdraughts. Labour is currently in the most difficulty but the Conservatives know full well that can be them. That means they are in hock to the bankers. I assumed it meant the politicians were allowed to make angry noise (the bankers understanding there was public anger to which the politicians had to be seen to respond) but were not allowed to do anything except make noise or the bankers would pull the plug. However, Gordon Brown has put a 50% tax on some bankers bonuses over £25000. That is on discretionary bonuses but not on fixed bonuses. However, that tax only lasts unil April 5th so the banks can wait until after then to give out the discretionary bonuses. It may be the case that Gordon Brown had been generously allowed to do that for cosmetic reason, perhaps in agreement with David Cameron.