Distinguish Unit bank Vs Branch Bank

The bank is a financial institution which is dealer of money and loan. Unit bank and branch bank are two forms of it. But they have some differences. These are as follows-

Advantages and disadvantages of unit bank

Advantages of Unit Banks
The advantages of unit banks are stated as follows:
1. Rapid decision: The manager can take rapid decision at the time of sanctioning loan.
2. Efficient Management: Due to small scale of operation the management of this bank is efficient.
3. More safety: As it is situated at a certain place so clients thinks it more safety.
4. Establishing Direct Relation: As it has only one office so between the owner and the workers a direct relation is established.

Features of Unit Bank

Due to its nature of operation unit banks hold some features. Those are as follows:

1. Unit office: It has only one office. i. e. it has no branches.

2. Particular area: It deals its activities in a particular area, where it is established.

3. Ownership: Several times the ownership of this bank is sole proprietorship. But it can also be established by partnership or Joint Stock Company.

Definition of Unit bank

In the unit banking system the banking operation are carried by through a single office in a particular area. The size of the bank is usually small and the capital is limited. So it provides limited service to its clients. USA is called the homeland of Unit banking system and about 85% banks of USA are unit bank. These bank Conduct their banking operation by the Corresponding banking system.