Global Corporate and Investment Banking

These companies and business structures and capital-raising transactions in the equity and debt capital markets with large corporations, governments, and institutions enable them to grow their business globally.

This business structure also provides large domestic and global corporations and financial institutions.

Corporate Banking

Corporate banking is a subset of business banking that includes a scope of banking services. And these services are offered only to corporations. The services incorporate the arrangement of credit, cash management facilities, and so forth. 

Most of all of the commercial banks focus on corporate banking. As it provides them profit and also gives specialized finance professionals, which are capable of assisting the corporations to meet their business profit goals. 

Most of the time people think that corporate banking and investment banking are two different terms, but the fact is these terms are often used interchangeably.  

Transaction Services

A third-party service that is provided by any of the professional services firms when any transaction for their business takes place, this service is known as transaction service.

A merger or acquisition of a company would be the best example of a business transaction. 

These services are formed to protect client assets and these also allow clients to grow and develop.

Deloitte, PwC, KPMG, and EY are some esteemed companies that are having a good position for their valuable transaction services. These large companies are collectively known as the ‘Big Four’.

Advice and Services of Corporate Banking

Credit

Under Corporate Banking, Loans and related credits are offered to corporate customers. These credit facilities are the biggest share of profits for commercial banks. 

These credit facilities are having high-interest rates due to the amount of risk prevailing in lending credits to corporate customers. 

Treasury Services

 The companies use treasury services for managing the working capital requirements of a company. For Multinational Corporations, such services are most important, as they need currency conversion frequently. And these services facilitate currency conversion. 

Fixed Asset Requirement Financing

The corporations involved in capital-intensive industries such as transportation, information technology, and heavy machinery manufacturing need fixed asset requirement financing. Under this service, banks facilitate customized loans and lease agreements for the purchase of equipment, machinery, etc. 

Employer Services

Retirement plans, health care plans, as well as payroll facilities, the services which are given to employees by banks, are also provided by commercial banks under the employer services of corporate banking. 

Commercial Services

The services such as Portfolio analysis, leverage analysis, debt and equity restructuring, analyses of real assets, etc are also provided by corporate banks. 

Also, the services that are important to corporate clients include asset management services and underwriters for initial public offerings (IPOs), etc.

Characteristics of Corporate Banking

1. Clientele

A bank’s business unit generally serves middle-sized businesses.

• Liability

Companies are identified as separate legal entities under the provision, all contents of corporate accounts are kept under the property of the company and not under the individual board members. It also indicates to us that the personal creditors of the board of directors are not considered the contents of the corporate account of a company. 

• Authority

If a company wants to open a corporate banking account then it can only be opened after obtaining consensus from the board of directors of the company. It means that all members must be authorized by an official vote. Corporate accounts are usually opened by the company’s treasurer. 

• Credit Rating

The credit history of the company is formed by the conducting or functioning of the corporate accounts. It also affects the valuation and share prices of the company, the interest rates applicable to loans extended to the company, etc.

• Bankers

If you want to do corporate banking then you should have expertise in it. Thus, corporate bankers are paid immensely high. 

Other Services Provided by the Corporate Banking

Services other than those mentioned above are offered by the corporate baking are mentioned below

1. Overdraft Facility (OD)
2. Asset Management
3. Real Estate Commercial Services
4. Trade Finance
5. Underwriting Services
6. Currency Exchange
7. Mortgage Finance
8. Fund Transfers
9. Bills and Receivable Discounting
10. Online or Internet Banking Services
11. Import or Export Bills of Collection
12. Letter of Credit (LC)
13. Letter of Guarantee on Shipment and Bill of Landing
14. Insurance for Goods in Transit

Conclusion

Corporate Banks are a primary source of finance for entrepreneurial and business works. Corporate banks provide a wide range of financial services to business firms, which are very helpful for a business form in the establishment of a good business. 

Corporate Banking and its services are very crucial for domestic and international trade and commerce. Corporate banking provides its services and products to every small, medium, and large-sized business for its effective and efficient functioning. Its main goal is to maintain the value of the currency and to ensure price stability.