The chief argument against unit banking is that its services are not equally available to all parts of the country,

Under the unit banking system a large borrower may have to obtain part of a loan from several banks, if no single bank in the area is large enough to extend the entire loan.

Where there are only a few customers to be served, a small independent unit bank is more expensive to operate than a small branch.

The unit bank is likely to make most of its loans to its local area; and may be committed heavily to a few industries that predominate the region.