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1. Surplus employees: The defect of the system is that some of the workers are declared surplus. There is an increase in the rate of unemployment. The unemployed workers commit crimes in this society.
2. No of branches in rural areas: The private bank owners do not like to setup there branches in rural areas. The banking facilities remain confined to cities where sufficient deposits are available. A large part of population will be deprived of banking facilities.
3. Unbalanced growth: The management of privatized banks provides credit in specific areas and people. As a result, there is unbalanced growth in the country; especially rural areas may remains under developed where credit facilities do not exist.
4. Jobs for relatives: The management of privatized banks may provide jobs to their friends and relatives. The deserving persons are ignored.
5. Loans for few persons: The management of privatized bank can extend loans of their favored persons. In this way only few persons are benefited.
6. Owners association: The aim of privatized banks is to earn profit. For these purpose owners associations are made which enter into agreement of earning high profit. The bank can increase the rate of service charges. Such associations may not care for customer's welfare.
What else can I help you with?
What are the disadvantages of privatisation?
better check it out.........................hahah
What are the disadvantages of privatization of a country's postal service?
It has been argued that privatisation has not led to greater competision, as for postal servises they are public monopolies with no competision to become private monopolies. these companies will be able to exploit their positions in the country.
What is the difference between liberalization privatization stabilization?
Libralisation mean less strict by government, that may include privatisation but also includes deregulation resrtict on privatisation by removing government control on that particular firm. Privatisation mean specifically converting public i.e government entities into private oncs, usually by selling selling things like utility. Pratik
What is the conversion of former state run businesses to private enterprise is called?
Privatization.( or privatisation ) kapm
What is lasofare?
Do you mean Laissez Faire? That is "let it go" economics; deregulated banks, privatisation etc. "Lasofare" is not a word.
What are the disadvantages of privatisation?
better check it out.........................hahah
What are the types of privatisation?
share ls sue privatisation
What are the disadvantages of privatization of a country's postal service?
It has been argued that privatisation has not led to greater competision, as for postal servises they are public monopolies with no competision to become private monopolies. these companies will be able to exploit their positions in the country.
What was FEDECOR?
its a org which led to removal of privatisation of water
What has the author A W Mullineux written?
A. W. Mullineux has written: 'Banks, privatisation and restructuring in Poland' 'Privatisation in the United Kingdom and Germany: Lessons for Central and Eastern Europe' 'Privatisation and small business financing in the UK and Germany' 'The business cycle after Keynes' -- subject(s): Business cycles, Mathematical models
What are the goal of privatisation?
to aquire a new source of investment capital
What will ensure efficiency in the industrial sector of your county Nigeria?
privatisation
What has the author Catherine Price written?
Catherine Price has written: 'An industrial gas tariff' 'Malmquist indices of productivity change in the UK gas industry before and after privatisation' 'Privatisation in Malaysia'
Is privatisation the anwer to the poor performance of state owned enterprise in Ghana?
no
What is the difference between liberalization privatization stabilization?
Libralisation mean less strict by government, that may include privatisation but also includes deregulation resrtict on privatisation by removing government control on that particular firm. Privatisation mean specifically converting public i.e government entities into private oncs, usually by selling selling things like utility. Pratik
How did they solve the camelford water pollution problem?
They covered it up and continued with privatisation.
When the government sells industries it owns to private businesses it is called?
It is called privatisation.
