What is Unit Banking

Executive Summary

• Unit banking is a single branch bank.

Introduction

Unit banking is where a bank only has one branch. The concept of unit banking is to restrict banking power, and a unit bank may be viewed as the opposite of branch banking. The downside of unit banking is that a bank that is concentrated in one area can run into problems as they are not diversified out of that area. Of course, if the government performs all banking, there is not unit or branch banking issue.