BANKING

Summer Term (I), 2015

Instructor: Sumaira Hamid

Organizational Forms
The arrangement of personnel and
departments within a bank to provide and
deliver its services

Unit Bank vs Money Centre Bank

Unit Bank: Banks that sell services through
one full-service office Single Branch Bank
Money Centre Bank:
Banks with multiple branches,
overseas branches,
global clientele,
Deals in large volume of multiple currencies

Retail Bank vs Wholesale Institutions

Retail Bank:
A bank with heavy involvement in consumer
loans and deposits
Wholesale Institution
Concentrates
mainly
upon
serving
commercial customers and making large
corporate loans

Advantages of Large & Medium Sized banks

over Small Banks
Large banks are better diversified both geographically
& product wise
They have better ability to withstand financial &
economic fluctuations
Have an advantage of being able to raise financial capital,
sources of finance at lower cost
Greater capacity to accept risks of entering new markets
It has greater access to new capital and managerial
talent