Corporate Banking

Description

Corporate banking is a subset of business banking that involves a range of banking services that are offered only to corporates. The services include the provision of credit, cash management facilities, etc. The corporate banker’s role shows some tasks which are common to almost all the banks of the panel and which can be defined as “characterizing” the role itself (client portfolio assignment, client need diagnosis); some tasks are present in the majority of banks and can be defined as “common” (credit management, risk analysis, product specialist triggering, client scouting); some tasks are present just in a few banks and can be defined as “distinctive” (pricing, product specialist coordination, direct interface with the area manager or corporate division manager, loan underwriting). Corporate banking (also called institutional banking) is a division in a bank responsible for putting together loans to corporations, financial institutions, and governments. Corporate Banking usually falls under the Investment Banking umbrella of the bank and is often perceived as a “loss leader” for other investment banking products such as M&A, bond and equity underwriting. Credit creation separates a bank from other financial institutions. In simple terms, credit creation is the expansion of deposits. And, banks can expand their demand deposits as a multiple of their cash reserves because demand deposits serve as the principal medium of exchange. This book is about the system of banking and the mechanism of its credit creation and regulation of money. Banks now a days are not just the store to keep money and keep the savings of the people rather they have various activities like lending money to the needy people and acting as agents of the individuals and organisations.