Concept of Universal Banking:

Broadly defined, universal banking refers to an arrangement whereby a bank, that is, any deposit taking institution, could engage in a wide range of financial activities and could as well own and control non financial institutions.

It should be noted, however, that there is no generally accepted definition of universal banking. Universal banking practice depends essentially on the definition of banking business which varies from one country to the other. But there seems to be an agreement on its silent features. For instance, Universal banking practice entails the removal of restriction between money, capital and insurance markets such that a banking institution can offer integrated financial service. These include deposit taking and lending, underwriting of new debt/equity issues, stock broking, insurance, investment management and so on.