Universal Banking
Universal Banking
BY :
1. SUSHANT NAIDU - 31
2. SHEETAL NAIR - 32
3. KARTIK NAIR - 33
4. VISHAKHA PARMAR - 34
5. PAULIN MARY - 35
6. RAHUL RAJGOPALAN - 36
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UNIVERSAL BANKING
Universal banks are generally large banks with extensive network of branches that provide many different financial services and are principally engaged in commercial banking, investment banking, securities and even insurance. They invest in the equity and debt of the corporates and many even participate directly in the corporate governance of the firms that rely on the banks as sources of funding or securities underwriters.
Universal banks with some variations in structures, have been functioning in the United States, Europe, and Japan. India can also boast of joining the bandwagon as SBI, ICICI Bank and IDBI may now be termed as universal banks.
Financial economists observe that universal banks have evolved over a period of time and seemingly different functions like commercial banking, investment banking and securities trading have been consolidated to create a superstructure of financial services. Insurance business is a late entry in this convergence effort. In creating the mega universal banks, bankers felt that there could be economies of scale and scope, efficiency in risk management, improvement in operating efficiencies, improved financial stability through diversification of revenue streams, etc. They also felt that these mega structures, aided by technology could become formidable and very competitive. Further, universal banks could
BY :
1. SUSHANT NAIDU - 31
2. SHEETAL NAIR - 32
3. KARTIK NAIR - 33
4. VISHAKHA PARMAR - 34
5. PAULIN MARY - 35
6. RAHUL RAJGOPALAN - 36
[pic]
UNIVERSAL BANKING
Universal banks are generally large banks with extensive network of branches that provide many different financial services and are principally engaged in commercial banking, investment banking, securities and even insurance. They invest in the equity and debt of the corporates and many even participate directly in the corporate governance of the firms that rely on the banks as sources of funding or securities underwriters.
Universal banks with some variations in structures, have been functioning in the United States, Europe, and Japan. India can also boast of joining the bandwagon as SBI, ICICI Bank and IDBI may now be termed as universal banks.
Financial economists observe that universal banks have evolved over a period of time and seemingly different functions like commercial banking, investment banking and securities trading have been consolidated to create a superstructure of financial services. Insurance business is a late entry in this convergence effort. In creating the mega universal banks, bankers felt that there could be economies of scale and scope, efficiency in risk management, improvement in operating efficiencies, improved financial stability through diversification of revenue streams, etc. They also felt that these mega structures, aided by technology could become formidable and very competitive. Further, universal banks could