Overview of Universal Banking

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Overview of Universal Banking (Final Project Report)

Page Length : 76

EXECUTIVE SUMMARY

It is a well known fact that economic growths implies a long term rise in per capita national output and such increases are very much associated with drastic and extraordinary changes in technology, institutional set up, psychological environment, organizations behavior, socio culture and attitude of common people. For social development economic growth is necessary and for economic growth industrialization is necessary and for industrial growth efforts, capital and knowledge are three important elements and among these element capital is the most crucial component. However, metamorphic environmental developments in and outside the political boundary and the open market policy with the hedges cocooning the economy has been abolished by the computer and telecommunication revolution. The net communications have explored geographical and functional integration of international financial markets. Further, deregulation of financial market and intensified competition among banks and non banking financial intermediaries have minimized the hurdles between money and capital markets and explored more diversified, organized, multipurpose and innovative financial institutions functioning in unprecedented dimensions.

It has been found that a wide spectrum of financial intermediaries in money market and capital markets under the supervision and guidelines of central banks as an apex body has came into existence across the world to fulfill varied requirements of savers and investors. Notable agencies among money market institutions engaged principally in providing term financing to investors and entrepreneurs are commercial banks, discount houses, acceptance houses and indigenous agencies and among capital market institutions, insurance companies, venture capitalists, vulture funds, mutual funds, investment banking, development banking, virtual banking, merchant banking, mutual banking, and universal banking.

In general perception the term Universal Banking refers to a financial institution offering commercial as well as investment banking services which also include services related to savings, loans and investments. But in real practice, institutions which offer a wide range of financial services, beyond commercial banking and investment and investment banking and various other activities including insurance are regarded as universal banking. It is like a coordinated financial super market supplying innovative and multifarious products under one roof. It is one spot ultimate shopping place for a customer who is willing to deal in several financial products. It combines the complexities of investment banking with simpler commercial banking services for individual and companies.

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