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Advantages And Disadvantages Of Branch Banking System

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analogous situation where the financial resources of the country are concentrated in the hands of a handful of men. Such a monopolistic power over the financial resources is always detrimental to the interests of the community whose goal is to create a socialistic pattern of society. • Regional Balances: Under this model of banking, impetus is given to regional imbalances in the country because the financial resources that are collected in the smaller and backward branches of the country are transferred to the bigger industrial centres. • Continuance of Non-Profitable Branches: Under this model of banking, the weak, fragile and the unprofitable branches of the bank are allowed to operate despite their non-profitability under the protective cover of the stronger and profitable branches of the bank. • Unnecessary Competition: Under the branch banking system, which happens to be delocalised banking, the branches of different banks get concentrated at certain places, especially in big cities and towns. This leads to unhealthy and unnecessary competition among them. The branches of the computing banks try to entice and attract customers by offering extra inducements and facilities to them. This unnecessarily entails the increase of the bank expenditure. • Expensiveness: When compared to the Unit Banking system, the Branch Banking system is more expensive. When the bank its number of branches across a wide geographical area, then they rises the need and the problems of

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