Merchant banks

Merchant banks
Definition: Banks which provide services mainly to companies including issuing new shares.
Related glossary term: ...

Merchant Banks - Merchant banks do not offer services to the general public but advise companies on corporate finance, investment management and securities trading. They manage large funsd such as pension funds.

Merchant Banks: Their Structure and Function
Checklists
Merchant banks provide venture capital and mezzanine financing (a hybrid of debt and equity financing that is typically used to finance the expansion of existing companies).

Investment banks, also known as merchant banks, concentrate on raising money for companies from private investors or in the financial markets, by finding buyers for their equity and corporate bonds.

Banking services between merchant banks and other financial institutions. Wholesale banking deals with larger institutions, where as retail banking would focus more on the individual or smaller business.

By limiting their scope to the needs of large companies, merchant banks can focus their knowledge and be of specific use to such clients. Some merchant banks specialize in a single area, such as underwriting or international finance.

Merchant banks engage in trade financing
Private banks manage the assets of "high net worth" (rich) individuals
Savings banks write mortgages exclusively
Offshore banks are banks located in jurisdictions with low taxation and regulation ...

Wholesale Banking
Banking services between merchant banks and other financial institutions.
Notes:
In other words, business to business banking.

A nonbanking Edge Act corporation makes equity investments under Federal Reserve Regulation K in foreign corporations, such as merchant banks or finance companies.

A form of unsecured debt finance provided by merchant banks and development capital fund managers to companies which are in a growth phase, but may not have access to equity capital or are unwilling to dilute their existing shareholdings.

the term refers to US banks like Merrill Lynch, Goldman Sachs and Salomon Brothers which underwrite and deal in securities and do not take deposits directly from the public. In the UK investment banks are frequently known as Merchant banks.

See also: Banks, Merchant Bank, Mergers, Acquisitions, Risk management