Disadvantages Of Unit Banking

Banking , Business
Major disadvantages or drawbacks of unit banking system can be highlighted as follows:

1. Lack Of Solvency

Due to small scale operation, it has less capital than branch bank. So, there is a lack of solvency in unit banking.

2. Lack Of Specialization

Unit bank cannot hire skilled, qualified and specialized employee because of limited capital. So, it lacks specialization.
disadvantages unit banking
3. No Division Of Labor

Unit bank cannot practice division of labor in the workplace because of small size and limited capital.

    Also Read:

4. Lack Of Fund Mobility

Unit banking lacks mobility of fund because of limited area and localized operation.

5. Local Pressure

Unit banks have to face local pressure and disturbance. So, it is very difficult of offer banking service in certain locality only.

6. Less Profit

Unit banks have less profit because of the lack of branch, limited area of operation, less deposit and less investment opportunities. 
Read more »
By
Tags ,

Advantages Of Unit Banking

Banking , Business
Major advantages or merits of unit banking system can be highlighted as follows:

1. Efficient Management

In unit banking, all services are offered from a single office. Because of small scale operation, supervision, coordination, coordination and controlling is very easy. So, it can be managed efficiently and effectively than branch banking.

2. Less Irregularities And Fraud

Because of effective supervision and effective controlling system, there is less risk if irregularities and fraud under this banking system.

3. Prompt Decision

Bank manager can make any decision without consulting others. So, prompt decision is possible in unit banking. Quick decision helps to act quickly.

4. Low Overhead Cost

Because of small scale operation and less number of employees, Operational and overhead costs are lower than branch banking system.

5. Less Risk

Unit banking is less riskier than branch banking system because of small amount of capital.

Unit banks collect deposits from local people and utilize for the development of the same area. So, these banks play important role in the development of the society.

7. No Competition

Unit bank is free from competition because it is located at a certain area where other banks do not exist.

8. Direct Customer-Banker Relation

It is easy for the management to establish direct contact and relation with customers and other related parties because of small scale operation.
Read more »
By
Tags ,

Advantages And Disadvantages Of Bank Regulation

Banking ,
Benefits/Merits/ Advantages Of Bank Regulation

Main advantages or benefits of banking regulations are as follows:

1. To Build Confidence

Bank regulation helps to build public confidence and create trust in the banking system of the country.

2. Safety

Banking regulation ensures the safety of public savings in the bank. It is essential to protect public deposit.

3. Credit Control

Credit control is another important advantage of banking regulation. It prevents excess credit creation by controlling loans and investments.

4. Fairness

Bank regulation ensures fairness in financial services to all the customers without discrimination on the basis of race, sex, religion etc. 

5. Implementation Of Policy

It helps to implement government's policy properly to assist the economic policy of the nation.

advantages disadvantages bank regulation

Drawbacks/Demerits/ Disadvantages Of Bank Regulation

Major drawbacks or disadvantages of banking regulation are as follows:

1. Less Profit

Unnecessary control and heavy regulation may restrict banks to perform their tasks freely. So, banks cannot earn adequate profit.

2. Failure

Banking regulation may control unnecessary banking activities but it cannot prevent bank failure.

3. Costly And Time Consuming

Bank regulation is very costly and time consuming process.
Read more »
By
Tags

Disadvantages Of Multinational Company

Business , Marketing
Main disadvantages or drawbacks of multinational company can be highlighted as follows:

1. Complex Legal Requirements

Multinational companies need to follow complex legal requirements and strict laws of host country. So, it is very difficult to establish and operate business in foreign countries.

2. Loss Of Sovereignty 

Multinational companies tries to influence internal politics and they disregard national policy and priorities of the host country. This may negatively impact sovereignty of the host country.

3. Threat To Local Industries

Multinational companies may dominate local industries by increasing unfair competition and by establishing monopoly in the local market of host country.
disadvantage multinational company


4. Transfer Of Capital

These companies bring large amount of money to the host country. It may create negative impact in the economy of home country.

5. Labor Exploitation

Multinational companies offer low wages to the employees of host countries in order to increase profit. So, exploitation of labor is a major drawback of these companies.
Read more »
By
Tags ,

Advantages Of Multinational Company

Business , Marketing
Main advantages of merits of multinational company can be highlighted as follows:

1. Foreign Direct Investment

Multinational companies bring foreign currency in the form of foreign direct investment to the host country. So, it helps to maintain the adequate stock of foreign currency to the developing countries.

2. Employment Opportunity

Multinational companies create large employment opportunities in the host countries. It helps to minimize the unemployment rate of the country.

3. Arrival Of New Technology

Multinational companies bring new skill, latest technology and modern machinery from the home country to the host country in order to operate the business. It helps industrial development of the country.
advantages multinational company
4. Resource Utilization

Multinational companies utilize unused local resources ( like water, land, forest, mines etc.) by using their skills and technology.


5. Increase Government Revenue

These companies pay more tax than local companies. So, multinational companies help to increase government revenue.

    Also Read: 

6. Improve Balance Of Payment

Multinational companies help the host countries by promoting exports and decreasing imports. So, it helps to improve balance of payment of the country.

7. Overall Development

MNCs bring capital and technology from home countries, create employment opportunities, improve balance of payment of the host country. So, these companies are very helpful in overall development of the country.
Read more »
By
Tags ,

Disadvantages Of Cooperative Organization

Business , Education
Some of the notable drawbacks or disadvantages of cooperative organization are highlighted below:

1. Lack Of Privacy

In cooperative organization, all business activities are performed openly. Members of the society can easily get information about the business affairs. So, it lacks secrecy and privacy.

2. Limited Resources

Generally, cooperatives are established and operated by lower and middle income group people. The cannot invest adequate capital to undertake large scale business.

3. Possibility Of Disputes And Conflict

Because of open membership, people of different background (religion and ethnic group) and status may be the member of cooperatives. So, there is a possibility of disputes and conflict among the members of cooperative organization.
disadvantages of cooperative organizations
4. Slow Decision Making Process

All the members are involved in the decision making process of cooperatives. Decisions are taken after long discussion and consultation with the members. So, decision making process takes a long time.

       Also Read: 

5. No Prompt Action

Because of slow decision making process, prompt action is not possible in this type of business organization.

6. No Credit Facility

In cooperatives, all the transactions are performed on cash basis. So, there is no credit facility to the members.
Read more »
By
Tags ,