Recent earnings reports from some of the leading financial institutions have revealed that their profits in the third quarter are largely attributable to investment returns and not from their lending business.Analysts speculate that the banks do not yet have confidence in the lending sector as a viable line of business.

Bank lending practices are an important fuel in stimulating and sustaining economic growth, but if the banks are reluctant to engage in their core business, what impact might that have for economic growth in general?

Hopefully, other industries are attempting to leverage their core businesses instead of relying on their treasury strategy to create profit. However, if you find that the market is not ready for the expansion of your business, where are you putting your retained earnings?

          
“I never worry about action, but only about inaction.”

-Winston Churchill