APPLICABILITY OF RETAIL BANKING CONCEPTS, BRANCH PROFITABILITY
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Retail Banking and Wealth Management — JAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is retail banking?
Retail banking refers to banking services offered directly to individual consumers and small businesses, including deposits, loans, payments, and other personal financial products, as opposed to wholesale or corporate banking.
What is the concept of 'cost centre' in branch banking?
A unit where costs are tracked without direct revenue attribution.
How does retail banking differ from wholesale banking?
Retail banking serves individual customers and small businesses with standardized, high-volume, low-value transactions, while wholesale banking deals with large corporations, financial institutions, and governments with high-value, low-volume transactions.
What does the 'spread' represent in retail banking profitability?
Difference between lending rate and cost of funds.
What are the primary products offered under retail banking?
Primary retail banking products include savings and current accounts, fixed and recurring deposits, personal loans, home loans, auto loans, credit cards, debit cards, and remittance services.
What is the purpose of activity-based costing (ABC) in branch profitability?
To allocate costs accurately to specific banking activities and products.
What is branch profitability in the context of retail banking?
Branch profitability refers to the net income generated by a specific bank branch after accounting for all revenues (interest income, fee income) and all direct and allocated costs incurred by that branch.
What is the role of a retail bank branch as a distribution channel?
It delivers financial products and services directly to individual customers.
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