BANKINGSummer Term (I), 2015Instructor: Sumaira Hamid

Organizational Forms

• The arrangement of personnel anddepartments within a bank to provide anddeliver its services

Unit Bank vs Money Centre Bank

• Unit Bank: Banks that sell services throughone 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 consumerloans and deposits

• Wholesale Institution

• Concentrates mainly upon servingcommercial customers and making largecorporate 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