What is Unit Banking?

Unit Banking:
Unit Banking means a system of banking under which banking services are provided by a single banking organisation. Such a bank has single office of place of work. It has its own governing body or board of directors. It functions independently and is not controlled by any other individual, firm or body corporate. It also does not control any other bank. Such banks can become member of the clearing house and also of the Banker's Association. Unit banking system originateed and grew in the USA. Different unit banks in the USA are linked with each other and with other financial centres in the country through 'correspondent banks.'
Advantages of Unit banking
Disadvantages of Unit banking

Disadvantages of Unit Banking

Disadvantages of Unit Banking:

1. No Economies of Large Scale
2. Lack of Uniformity in Interest Rates
3. Lack of Control
4. Risks of Bank's Failure
5. Limited Resources
6. Unhealthy Competition
7. Wastage of National Resources
8. No Banking Development in backward Arear
9. Local Pressure