Evaluate the following statements regarding Retail Banking operational frameworks: Statement 1: Retail banking is characterized by 'low value, high volume' transactions which necessitates the use of robust Core Banking Solutions (CBS) to maintain real-time ledger accuracy. Statement 2: The 'Cost of Funds' for retail banking is generally lower than wholesale banking because retail banks rely significantly on low-cost CASA (Current Account Savings Account) deposits. Statement 3: 'Horizontal Organized Retail Banking' refers to a structure where the bank provides a full range of retail products across all branches, whereas 'Vertical Organized' refers to specialized customer segments. Statement 4: Retail banking risks are predominantly operational and reputational, as credit risk is diversified across a large pool of smaller borrowers. Which combination of statements is correct?

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Economics · Banking and Finance

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Statements 1, 3, and 4 are correct.

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Answer 1

Only Statements 1 and 4 are correct.

Answer 2

All statements are correct.

Answer 3

Statements 1, 3, and 4 are correct.

Answer 4

Statements 1, 2, and 3 are correct.

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