What are the advantages and disadvantages of unit banking?

Answer 1

Merits of Unit banking: 1>> Local unds for local people: The unit banking of a particular locality itilises its resources for the development of ts own locality only and does not transfer them to other localities like branch banking. 2>> Intimate Knowledge of Customer: The Managers of the local unit bank can easily acquire the personal knowledge of customers as well as the specialised knowledge of the local industries and occupations therefore he is in a better position to serve the need of the local borrowers. He has greater chanses cultivating friendly and personal relationship with the induvidual enterpreneurs of his locality. 3>> Management easy 4>> Benefits to locl people 5>> Convinent management supervision and control 6>> Discontinuence of inefficient branches7>> Check on the banking monopalies

Answer 2

One of the disadvantages of unit banking is that it prohibits the profitable expansion of a bank to other areas and that means that if someone migrates, he may have to give up his account. An advantage is that it keeps the ownerships of banks in control so that only well capitalized owners can run the banks.