Under branch banking system, a single bank has many branches spread over a vast geographical area. Here, all branches of a bank uniformly follow the policies formulated by the Head office. Each branch manager manages its business in accordance with the local requirements within the overall policies and guidelines of the Head office. For instance, a deposit oriented branch would remit the surplus to the head office without the need to bother about its effective use. Likewise, advances oriented branches can draw from the head office the required funds.
Branch banking originated in England and is followed in most countries of the world. Australia, India, Canada, South Africa are some of the countries following branch banking system. In India almost all banks follow this type of banking.
Under unit banking system, banks function as monoliths with one office with a few branches spread within a small area of operation. Therefore, a large number of banks operate with a limited area of jurisdiction. The unit banks are linked through a system of correspondent banks. A bank in a small town maintains an account with a bank in a big city. The small banks will seek the help of bigger banks in rendering services, like remittance of funds, etc., to their customers in big cities.
The United States of America is the home of unit banking. It has over 10, 000 commercial banks. The big banks are established under Federal Laws as national banks. Smaller banks are established under the state laws as state banks. The preference of unit banking reflects the economic and political philosophy of the country against the concentration of economic power.
The demerits of branch banking are merits of unit banking. However, it can be seen the advantages of branch banking outweigh, those of unit banking. The disadvantages of branch banking are such as can be overcome by proper planning and adopting good management practices. That is why branch banking is most prevalent system in the world.
M.J. SUBRAMANYAM, XCHANGING CO., BANGALORE
examples of branch banking
Chain banking means the situation like in India. the different branches of same bank will act as one unit. If one branch is making profit and another making loss, the loss making branch will not be closed.
Uni-banking is a system where all the branches of the bank are electronically linked and the customers can carryout their transactions at any branch of the bank as it is the branch where they have their account. But inter banking is a system where you carryout transactions between two banking institutions.
Core banking means - every single branch of the bank has access to the accounts held under every other branch of the bank. If a bank has core banking services, a customer of the bank who has an account with any branch of theirs can use their services in any of their branches across the country. This way the customer need not visit only his/her branch but use the banks countrywide branch network.
All banks have banking services available. Visit a local branch to see what they have to offer you there
examples of branch banking
unit banking operate one full banking services
Chain banking means the situation like in India. the different branches of same bank will act as one unit. If one branch is making profit and another making loss, the loss making branch will not be closed.
This is the traditional form of banking where all the banking services are provided over the counter in the branch itself.
branch name
For convenience.
Core Banking Services
Swift code is 236 of sumitomo mitsui banking corporation omori branch
Branch Banking and Trust is an FDIC insured lending institution that operates in 12 states across North America and Washington D.C.. As of October, 2012 Branch Banking and Trust had assets that totaled $178,034,172.
Uni-banking is a system where all the branches of the bank are electronically linked and the customers can carryout their transactions at any branch of the bank as it is the branch where they have their account. But inter banking is a system where you carryout transactions between two banking institutions.
Luther Armstrong Harr has written: 'Branch banking in England' -- subject- s -: Banks and banking, Branch banks 'Banking theory and practice' -- subject- s -: Banks and banking, Federal Reserve banks
the disdantages are that read it yourself