Advantages of Universal Banking:

Advantages of world-wide brinking: Economies of surpass from lower operational costs, i.e., larger scale smoke avoid the wasteful duplication of marketing, research and increase and info gathering efforts. By offering a broader castigate of m cardinaltary 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 pecuniary services through a single-window. flexibility in adapting to the fast changing environment. Better and advanced(a) products. Reduction of essay by diversification. Access to international financial markets. Higher product due to specialization. Limitations of universal banking: The failure of a larger refuge could have serious ramifications for the entire formation in that if one universal bank were to collapse, it could lead to a general financial crisis. Thus, popular Banking could subject the economy to the change magnitu de systemic risk. comprehensive bankers whitethorn 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 enthronization bullion banking activities coupled with focus on commercial-grade banking activities. By legality of their skip size, universal banks may gain monopoly power in the market, which butt have significant undesirable consequences for economic efficiency. Universal banks may tend to work primarily with large launch customers and brush aside 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 lot 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 non objectively advise their clients on optimal direction of financing or they may have an interest in! securities because...If you regard to get a full essay, order it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay