Make Your Own Rules

9making the most of the banking system

BANKING IS THE business of finance. It has been ridiculed and almost nationalized, but it is not broken. The financial system ran aground in the first decade of the twenty-first century because it abandoned the direct borrower/lender relationship in favor of a complex geometric expansion of unsustainable credit through exotic financial instruments. Today’s major money-center banks are transaction oriented. They are conditioned to volume and processed by computers, and they do not take into account the human element. But, even in the wake of the recent financial crisis, smaller banks have not abandoned this approach, and they can be a great asset to the entrepreneur.

To run a business, you will need a bank. ...