Branch Banking
Banking Branch Banking System means a system of banking in which a banking organization works at more than one. This is the world’s most practices banking system. we will review the Meaning, Functions, Advantages, Disadvantages of Banking Branch
We have identified 13 advantages of the branch banking system;
- Economics of Large Scale.
- Spreading of Risk.
- The economy in Cash Reserves.
- Diversification of Deposits and Assets.
- Decentralization of Risks.
- Easy and Economical Transfer of Funds.
- Cheap Remittance Facilities.
- Uniform Interest Rates.
- Proper Use of Capital.
- Better Facilities to Customers.
- Contacts with the Whole Country.
- Uniform Rates of Interest.
- Better Training Facilities for Employees.
8 disadvantages of the branch banking system are;
- Difficulties of Management.
- Supervision and Control.
- Lack of Initiative.
- Monopolistic Tendencies.
- Regional Imbalances.
- Continuance of Non-profitable Branches.
- Unnecessary Competition.
- Expensiveness.
- Losses by Some Branches Affect Others.
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