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How is Universal Banking effective?

Updated: 8/17/2019
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13y ago

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it gives every person an opportunity of every financial releated services like securitisation of debt , factoring , forfeaiting etc........

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Q: How is Universal Banking effective?
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How is universal banking system operated?

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What is the impact of universal banking in Nigeria economy?

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Is universal banking is also know as commercial banking?

Yes, Universal banking is commercial banking itself. However, Universal bank does more than a commercial bank. Universal Bank are what we call the "expanded commercial bank" (EK). Commercial banks are limited to allied banking only whereas a universal bank does allied and non-allied banking transactions.


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Acitivity of a bank, besides conducting core banking activities, also undertakes marketing other financial instruments issued by other entities, then such banking activity is known as universal banking.


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One of the disadvantages of universal banking is the offering of a large number of products that follow different sets rules and regulations. Since this is done by large banks, it may affect the banking system when it fails. Universal banking may also lead to monopoly and harm the economy of a country.


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