The advantages of universal banking are: risk diversification and expanded business opportunities. A universal bank can spread its costs over a broader base of activities and generate more revenues by offering a bundle of products. diversificatio, in turn, reduces risk.
* insurance companies, invetsment banks and other suppliers of financial services are moving toward building financial conglomerates;
*technology firms (such as Microsoft) are hammering away at banks' network--building the electronic gateways into financial services.
The solution of Universal Banking was having many factors to deal with, which can be further analyzed by the pros and cons.
Advantages of Universal Banking
Universal banking offers savings, loans, and investments.
Although there are a number of banking institutions that aid international banking, their functions often overlap. The international banking "system" does not have one entity that functions as a regulatory type central bank. For example, in the US the Federal Reserve System and its lead bank, the Federal Reserve Bank of New York has a number of high level functions that govern the US banking system and at times interfaces or influence other world central banks. With that being said, no single world banking organization can function in the world as a central bank functions within a single nation.
the increasing trend of mobile banking (iphone app banking)
American banks that do banking business in Ghana
important of utility to banking and finance
Institutional banking refers to the institution's depositing or withdrawing money in a bank.
how is universal banking system operted/
Universal banks are able to take on a large number of functions because they are both a commercial bank and investment bank. Additionally, universal banks provide other financial services such as accounting, insurance, fund investment, and issuing of credit cards.
What is the impact of universal banking on nigeria economy
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.
The function of universal banking include provision of a wide variety of financial services. It also includes both commercial and investment services.
There are many functions of core banking. A few of the functions are payments, mortgages, and several types of transaction accounts.
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.
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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The function of universal banking include provision of a wide variety of financial services. It also includes both commercial and investment services.