All transactions of a bank with the mass of private households. This also includes corporate loans to small business owners and craftsmen. – Although the customer-oriented retail business is considered to be particularly cost-intensive (provokes a high level of fixed costs), it generally secures the bank a permanent, stable turnover and, according to an old rule of thumb from banking practice, should generate as much as half of the profit as possible. Defaults in the retail business are relatively low, especially if the institutions carry out careful credit checks. Of course, competition between banks in the retail business is very high. This forces every institution to pay special attention to customer loyalty. – See blank credit, credit scoring procedure, bulk business, multiple link, personal loans, personal credit, wholesale banking.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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