Universal Banking

Universal bank are those banks which offer a wide range of financial services apart from the traditional functions of commercial bank like accepting deposits and granting of loan. In this type of banking, large banks operate extensive networks of branches, who provides many services hold several claims on firms including equity and participate directly in the corporate management of firms which depend on banks for funds .this is very popular in European countries. It is a combination of commercial banking, investment banking ,insurance and other activities.

All the things have some advantages and disadvantages it has also some advantages and disadvantages. The main advantage of this is that it results in greater efficiency in the form of lower cost, higher output and better product. And the main disadvantage of this is that such institutions, by virtue of their sheer size would gain monopoly power in the market.

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