Commercial banks are guaranteed by the state not to fail because they take deposits from the customers. Investment banks have nothing to do with the individual customer. They don't take or lend deposit. they deal a lot in securities activities which is very risky business. You could win or lose a lot.
Most or all commercial banks now have an investment banking arm or department which risks or endangers the deposits of customers if their deals go sour. If things go bad, the commercial bank is guaranteed by the state not to fail so they will pump money into that bank, i.e taxpayers money. This is all because the investment arm of this bank blew all the banks money in its risky bet. Therefore an investment bank should be separate from commercial.
Investment banks provide financial services that are geared toward raising capital such as underwriting, issuance of securities, assisting in Mergers and Acquisitions, and investment management. Unlike commercial banks, they do not take deposits. While investment banks make their money by charging fees for their services, commercial banks earn their money by charging higher interest rates on loans than what they pay for people's deposits.
The Glass Steagall Act is a way to separate investment and commercial banking activities from overzealous commercial bank involvement in Stock Market investment. Which was deemed for the financial crash.
investment in debt securities
Do you mean commercial banks or investment banks?
A syndicated loan is provided by a group of lenders and is arranged by one or several commercial banks or investment banks. These banks are known as arrangers.
Investment banks provide financial services that are geared toward raising capital such as underwriting, issuance of securities, assisting in Mergers and Acquisitions, and investment management. Unlike commercial banks, they do not take deposits. While investment banks make their money by charging fees for their services, commercial banks earn their money by charging higher interest rates on loans than what they pay for people's deposits.
The Glass Steagall Act is a way to separate investment and commercial banking activities from overzealous commercial bank involvement in Stock Market investment. Which was deemed for the financial crash.
investment in debt securities
Banks can be broadly classified into many categories based on the functions they perform and based on the services they offer. Some of the types of banks are: 1. Commercial/Retail Banks 2. Private Banks 3. Investment Banks 4. Rural Banks 5. Co-operative Banks 6. Industrial Banks 7. Etc.
Do you mean commercial banks or investment banks?
A syndicated loan is provided by a group of lenders and is arranged by one or several commercial banks or investment banks. These banks are known as arrangers.
no
According to my research on our friendly world wide web i found out that, Investment banks: Are those banks which raise money by selling securities to other companies and government. At present (since Lehman brothers & Merill Lynch are out of picture) Goldman sachs and Morgan Stanley are largest investment banks in USA. Retail banks: Are those banks which directly deal with customers. It deals with savings account, checking account, personal loans etc Commercial banks: Take deposits and gives loan to corporations. Bank of America is the largest commercial bank. Universal banks: are banks that participate in activities of commercial banks as well as investment banks. Bank of America is an universal bank
Banks have a number of classifications based on the type of business they are engaged in. Here is a list of bank classification: * central bank; * commercial bank; * wholesale banks; * savings banks; and * investment banks.
The Glass Steagall Act is a way to separate investment and commercial banking activities from overzealous commercial bank involvement in Stock Market investment. Which was deemed for the financial crash.
These banks were created to discount or buy short- and intermediate-term notes of agricultural business from commercial banks, savings and loans, and other financial institutions.
Commercial banks Savings and loan associations (S&L's) Credit Unions Brokerage Firms Additionally, central banks should be added to the types of financial institutions. Along with these are international institutions such as the IMF and the World Bank