A bank that deals mostly in (but is not limited to) international finance, long-term loans for companies and underwriting. Merchant banks do not provide regular banking services to the general public.
Their
knowledge in international finances makes merchant banks specialists in dealing
with multinational corporations.
A merchant
bank is a
financial institution which
provides capital to
companies in the
form of share ownership instead of loans. A merchant
bank also provides advisory on corporate matters to the firms they lend to. In
the United Kingdom, the term "merchant bank" refers to an investment
bank.
Merchant Banking Operations in Bangladesh
A
merchant bank is a financial institution which is primarily engaged in offering
financial services and provides advice to corporations and to wealthy
individuals. The term can also be used to describe the private equity
activities of banking.
Investment
Banking is an American synonym of merchant banking. Investment banks provide
advice on mergers and acquisitions and are involved in financing industrial
corporations through buying shares and selling them in relatively small lots to
investors.