What Are The Basic Functions Of Universal Bank?

A universal bank has two main functions: To operate as a commercial bank, and to operate as an investment bank. Particularly in the UK and the United States of America, these two institution types tend to be kept separately. But with the recent removal of legal and technical barriers, the possibility of a universal bank has become apparent. After the global financial crisis of 2008, universal banks have become more popular as the number of pure investment banks has fallen. In other major countries, almost all large financial institutions operate as universal banks, with some smaller firms specializing in either commercial or investment banking.

• Commercial banking

Commercial banking involves meeting the financial needs of the regular consumer. Examples of commercial banks on the high street include Halifax, HSBC and Santander. Commercial banks offer features such as savings accounts, current accounts and credit in order to meet the needs of a range of customers. The extent to which they are willing to work with a particular consumer will depend upon the individual's credit rating. Those with better credit scores will have more access to loans and current accounts with substantial overdraft facilities.

• Investment banking

Investment banks most often work with firms, or consumers with large quantities of savings. They will work with customer money and invest it in various areas, often in firms listed on the FTSE 100. Most investment banks offer a range of investment portfolios with varying levels of risk. Experts at these financial institutions will aim to get the most out of investment opportunities as possible; customers hand over their savings in order to gain returns. Of course, this method of making money is not always successful, and can result in huge losses.

then ...... What is the diffrent between UB function & UB fill range of its services