mageshkannan
Joined: 06 Mar 2013
Posts: 36
|
 Posted: Thu Apr 04, 2013 1:47 pm Post subject: The main drawbacks of group banking are as follows: |
 |
|
1) In the system of group banking, the holding company, which may or may not be a banking company, uses the banks under it as a means of speculation. Because of this, the efficient working of the member banks has an effect on the management of the holding company. This happens to be one of the main drawbacks of the system of group banking.
2) Another drawback of this system of banking is the fact that the operations of one bank effect the operations of the other member banks. Even though the member banks carry out their operations as separate legal entities, each with their own board of directors, the failure of one member bank will have an effect on the working efficiency of the other member banks.
3) In the system of group banking, there are sometimes common purchasing agents who indulge in corrupt speculative practices.
_________________
To Get More Information Click on car loan emi calculator hdfc bank and personal loan emi calculator |
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
