Advantages of Universal Banking:

Advantages of world-wide blasphemeing: Economies of surpass from lower operational costs, i.e., larger scale sack avoid the wasteful duplication of marketing, research and increase and culture gathering efforts. By offering a broader castigate of pecuniary products than what a vary bank delivers, a universal bank is able to establish long-term relationship with the customers and provide them with a package of financial services through a single-window. tractability in adapting to the fast changing environment. Better and advanced(a) products. Reduction of take chances by diversification. Access to international financial markets. Higher end product due to specialization. Limitations of universal banking: The failure of a larger mental hospital could have serious ramifications for the entire formation in that if superstar universal bank were to collapse, it could lead to a systemic financial crisis. Thus, popular Banking could subject the e conomy to the change magnitude systemic risk. planetary bankers may be tempted to take lush risks. In such cases, the government would be forced to gradation in to save the bank. Vulnerable to high risks due to coronation finances banking activities coupled with focus on commercial-grade banking activities.

By legality of their bold size, universal banks may gain monopoly power in the market, which fecal matter have significant undesirable consequences for economic efficiency. Universal banks may tend to work primarily with large launch customers and give nonice or discourage smaller and newly schematic businesses. Universal banks could use such practices as ! limit determine or predatory pricing to prevent smaller specialized banks from avail the market. This argument mainly stems from the economies of scale and scope. Combining commercial and investment banking gives rise to conflict of interests, as universal banks may not objectively advise their clients on optimal direction of funding or they may have an interest in securities because...If you take to get a full essay, order it on our website: BestEssayCheap.com

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