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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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14y ago
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15y ago

Commercial banks accept deposits from customers (which are insured by the FDIC in the U.S.) and also make consumer and commercial loans. The vast majority of the loans made by commercial banks are "held" on the bank's balance sheet as an asset of the bank. Investment banks are simply intermediaries. They do not accept deposits. Instead, they sell investments. Also, any loans (or other debt or equity issues originated by an investment bank) are typically NOT held by the company, but instead sold to a third party.

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14y ago

A customer is an individual or business that has an established relationship with a bank.

A consumer is an individual that does NOT have an established business relationship with a bank.

An established relationship is any type of account, CD, etc. This does not cover one-time transactions like check cashing, purchasing a money order, etc.

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13y ago

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.

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Q: What is the difference between wholesale banking and investment banking and merchant banking?
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Related questions

What is the difference between corporate banking and wholesale banking?

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


What is the Scope and nature of merchant banking in India?

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.


What is the difference between wholesale banking and retail 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 in India?

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"


What is the procedures 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"


What are the scopes of merchant banking?

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


Distinguish between commercial banking and 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" Commercial banks are the normal banks that provide day to day banking services like checking/saving accounts, fixed deposits, loans etc.


What are the Functions of merchant banking?

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"


Functions of merchant 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"


What is the main point of merchant banks?

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"


What is the definition of merchant 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"


What is marcent 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"