আচ্ছালামু আলাইকুম প্রিয় দর্শক - দেশি ব্লগর পক্ষ থেকে আপনাকে স্বাগতম। আজকে আমি আপনাদের মাঝে What are the types of banking system? Advantages and Disadvantages নিয়ে আলোচনা করব।
Unit Banking system
Unit banks are independent, one office banks. Their operations are confined in general to a single office. It was organized and grew in USA. This existence of unit banking in the USA is due to legal restrictions which prevent the growth of monopoly in banking. The size and area of operation in much smaller than in other types of banking system.
Even though, some unit banks have grown large but they operate under severe restrictions which limit or prohibit the establishment of branches. The unit banks operate in small towns and cities and are called country banks and city bank. All unit banks are linked together.
Advantages:
• Less chance of missmanagement.
• Initiative in banking business banking because the management of local only and they are aware what people need.
• Local development.
• No delay in decision making.
• No monopolistic tendencies.
Disadvantages:
• Very tresspass of local people and community in decision making.
• Liability to face crisis.
• Lack of specialization.
• Undesirable competition: Any type of management can open this type of bank
• It is presented in good town and semi-large town but not the rural or small town.
Group banking system
Group banking is a part of the USA banking system. It is a type of multiple multiple office banking consisting of two or more banks under the control of a holding company in which itself may or may not be bank. The term "bank holding company is based on 25 percent ownership or control of two or more banks. The holding company is called the parent company of banks and the banks under the holding company are called operating companies.
Advantages:
• Send of fund from one branch to another.
• Centralized administration.
• Economies of large scale operations.
• Maintain its own board of directors.
Disadvantages:
• Corruption.
• Monopoly.
• Lack of efficiency; because control administrative offer is generally not in position to enforce code of discipline.
Chain banking system
Chan banking is another form of group banking. They have common management and policies. The management may consist of group of persons through stock ownership or otherwise.
• The chain banking system occupies almost the same advantages and disadvantages as that of the group banking discussed.
Branch banking system
Branch banking is the most menifested banking system in the world.
In this system, a big bank has several branches in different parts of the country and even many branches within a cosmopolitan city like Dhaka, Chattogram, Sylhet or Rajshahi in Bangladesh. This system was initially developed in England.
Advantages:
• Large size: As it is in big size, it gets all the advantages of large type of institution.
• Large capital: Its capital is adequate because it is big.
• Distribution of risk: It can share the risks with its all other branches easily.
• Employment: A huge markable amount of employment is created by group banking system.
• Adequate investment.
• More liquidity.
Disadvantages:
• Complex management.
• More expenditure.
• Delay in decision making.
• Huge competition.
• Corruption.
• Local influence.
• Political influence.
Deposit banking system
Commercial banks are the best instances for deposit banking. Deposit bank will have to maintain liquidity i.e. enough cash reserve to meet withdrawals.
Deposit banks are those banks which accept deposits of short term and loans will also be for short term period.
The loans provided by deposit banks are the form of overcraft, cash, credit and discounting bills of exchange.
Correspondent banking system
Correspondent banking is an important feature of the USA banking system. The USA is geographically a very big country where there are thousands of banks which operate in restricted areas. The various typs of banks are able to operate efficiently through a Correspondent relationship with one another. That is a correspondent bank is one which connects the two banks under unit banking system. When a small bank keep up its deposits with a big correspondent bank having a network of branches, the latter provides such services to the former as extending large credit facilities, facilitating foreign permutation transactions, cheque clearing and collection, purchase and sale of securities.
Mixed banking system
The mixed banking system is the system in which the commercial banks advance both short-term and long-term loans to commerce and industry.
Under the british banking system, the commercial banks give short-term loans to commerce and industry. Mixed banks perform the usual banking functions and also provide industrial finance.
Investment banking system
These banks are those financial institutions which provided long term finance to business. They invest in capital market i.e. stocks and shares of different companies. These banks act as intermediaries between savers and investors. These investment bankers are classified into various categories such as underwriters and retailers. An investment banker performs highly useful services to the co-operative bodies by supplying long term capitals. They mobilize the investment through shares, stocks and mutual funds.
In this discussion, We know the details about various types of banking system.
আপনার আসলেই দেশি ব্লগর একজন মূল্যবান পাঠক।
What are the types of banking system? Advantages and Disadvantages এর আর্টিকেলটি সম্পন্ন পড়ার জন্য আপনাকে অসংখ ধন্যবাদ। এই আর্টিকেলটি পড়ে আপনার কেমন লেগেছে তা অবশ্যই আমাদের কমেন্ট বক্সে কমেন্ট করে জানাতে ভুলবেন না।
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