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Universal Banking - Coggle Diagram
Universal Banking
Advantages
Investors' trust
equity shares of many companies
Economies of scale
lower costs, higher output and better products and services
Resource utilization
Investment diversification
banks diversify their activities
Easy marketing
can easily market (sell) all their financial products
One-stop shopping
Disadvantages
Regulatory complexities
Different rules for various services
Effect of failure on banking system
is done by very large banks
Monopoly power
Conflict of interest
can result in conflict of interest
Commercial vs. investment banking
Comprehensive financial services
Retail, commercial, and investment services
Provided within one entity
Common in Europe (Switzerland, Russia), Japan