Question

Universal banks offer the full range of banking services, together with non-banking financial services, under one legal entity.” Explain the financial activities of banks

Answer 1

Meaning of Universal Banks: Universal Bank participates in many kind of of banking activities and other financial services such as insurance

Banks and financial institutions provides banking and other financial services to customer.A bank is generally understood as an institution which provides fundamental banking services such as accepting deposits and providing loans.There are also nonbanking institutions that provide certain banking services without meeting the legal definition of a bank. Banks are a subset of the financial services industry. Finacial Activities normally includes:

1.Stock broking

2.Insurance

3. Investment Management

4.Corporate advisory services including merger and acquistion

5. Trading of Finacial Instrument (bonds, equity, currency and associated derivative

MAIN BANKING FINANCIAL ACTIVITIES

Store money : Store money is classic  Banking activity . Customer deposits excess saving in bank accounts in form fixedDeposit, savings. So bank keep money and provide according to need of customer.

Facilitate Payment: There are number of facilities provided by banks like credit card, Atm cards , Internet banking with these facilities Customer can make anypayment with easy way without wasting of time.

Loan Money: Bank provide loan facility for housing loan, personal loan, car loan so customercan easily buy house, car with EMI Equally monthly installments. While providing loan to customer bank charge interest rate on loan.

Conclusion: So in the end we can say banks main activity is accepting deposits and lending money to its customers but except these two banks have so any other financial activities issuing bonds, stocks.