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What is the difference between wholesale banking and investment banking and merchant banking?

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2010-02-02 08:33:08
2010-02-02 08:33:08

Wholesale banking is the transaction of business between a bank and other financial institutions, large corporations, government agencies which usually involve high value transactions, meanwhile merchant banking is involved in long term loan and underwriting for corporation which may include international transaction

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There is no didderence as such! Corporate Banking fall under wholesale banking.

The scope and nature of merchant banking in India is investment banking. A merchant banker is used as an intermediary to match a company that needs capital to those that have capital.

The different types of banking services are:Commercial BankingInvestment BankingRetail BankingWholesale BankingRural BankingPrivate Banking

Wholesale banking is the business transactions that go on between banks. Retail banking has to do with direct customers of the bank.

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

Merchant Banking is commercial banking and investment banking for commercial entities, such as factoring, a forfait, placement of equity and debt, merger & acquisition etc. It is not your general bank account, credit cards or mortgages

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant" An Investment bank is a financial institution that helps individuals, corporations etc. in raising capital by underwriting and/or acting as the clients agent in issuance of securities (Shares, bonds etc.). An investment bank may also assist companies that are involved in mergers and acquisitions and provides services like trading stocks & derivatives, fixed income instruments, foreign exchange, commodities etc.

Banking and finance deal with money. Banks and investment banking firms lend funds and help with corporate mergers. Commercial banks deal with large and small customers. Investment banking is corporations and works on a wholesale basis.

Retail baningDeals with large no. of small value transactions whereas wholesale banking deals with a small no of large value transaction

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant" Commercial banks are the normal banks that provide day to day banking services like checking/saving accounts, fixed deposits, loans etc.

FUNCTIONS OF MERCHANT BANK:- portfolio management leasing loan syndication project finance issue management Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

The difference between retail and wholesale banking is much like the difference between retail and wholesale food procurement. The methods are very similar however, it is necessary to be well educated in the industry to insure getting the best product at the best price. Retail is for consumers, wholesale is for the industry.

objective of merchant banking

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"

The merchant banking aims at providing financial capital to companies. These capitals are in the form of shares and not loans. These merchant banks also give guidance on corporate affairs upon lending the money. A merchant bank is nothing but a financial institution also referred to as an investment bank.

The problem with merchant banking is not allowing youthful professionals into the merchant banking business. Even though merchant banking is vast it needs more acceptable expertise to provide more services.

Merchant banking provides services that businesses need. One disadvantage to merchant banking is that it is a little more expensive than personal banking,

The Merchant Capital is a investment and merchant banking firm which provides clients with financing in various aspects. Their focus is on education, healthcare, real estate, corporate and public/private finance.

Investment banking is a form of capitalism yes. They ability to be involved in investment banking is a right dictated by are free market.

No. Investment banking doesn't have to be part of core banking and/or minimal banking services. Investment banking is essentially a very different type of banking, it is not the same as retail, commercial or trade banking (which would constitute as core banking).


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