what is a universal bank model and what risk, if any, is inherent in this model?.

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Universal banking model is a system in which banks provide a wide variety of comprehensive financial services, including those tailored to retail, commercial, and investment services. Universal banking model is common in some European countries, including Switzerland

In the United States, by law banks are required to separate their commercial and investment banking services. Proponents of universal banking argue that it helps banks better diversify risk. Detractors think dividing up banks' operations is a less risky strategy.

Risk inherent in universal bank model are :-

Banks in the Securities Business: Market‐Based Implications of Section 20 Subsidiaries, Federal Reserve Bank of Philadelphia Working Paper No. 05‐26. Victoria Geyfman thanks Elyas Elyasiani, Loretta Mester, Mitchell Berlin, Leonard Nakamura, Robert Hunt, seminar participants at the Federal Reserve Bank of Philadelphia, the University of Arkansas, and participants of Mid‐Atlantic Research Conference in Finance at Villanova University for helpful comments and discussions

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