Universal Banking Law and Legal Definition

Universal banking is multi-purpose and multi-functional financial assistance, in which banking service includes investment services in addition to services related to savings and loans. Universal banking is a combination of commercial banking and investment banking. In universal banking, banking and financial services are provided through a single window. Universal banks could, in addition to making loans and accepting deposits, distribute new issues of debt and equity, trade and broker securities of all types. Universal banking permits better use of customer information. However, universal banking permits concentration of economic power in a handful of large banking institutions that hold equity positions in companies that are also borrowers of funds.