Uuniversal Concept of Universal Banking in Details will be discussed here. Read carefully till the end to know the meaning and information related universal banking.
Universal banking denotes the banks that offer a variety of comprehensive financial services, including both commercial banking services and investment banking services.
It means if a banking system or a bank renders varieties of services that are generally provided by commercial banks and investment banks then such a concept is called universal banking.
Commercial banks provide consumer and business services, such as acceptance of deposits, providing business and personal loans, and issuing certificates of deposits.
Similarly, investment banks provide merger and acquisitiuunion services for corporations, underwriting services, and brokerage services for institutional and private clients. Banks in a universal banking system provide services of both commercial and investment banking services, and they technically can render much more facilities to their client.
Universal banks may offer credit, loans, deposits, asset management, investment advisory, payment processing, securities transactions, underwriting, and financial analysis.
Therefore, universal banking combines the services of a commercial bank and an investment bank, providing all services from within one entity.
The services can include deposit accounts, a variety of investment services, and may even provide insurance services. Deposit accounts within a universal bank may include savings and checking deposits.