Merchant Bank - Merchant Banking - Underwriters - Bullion - Trading - Forex - Bonds - Pension Funds

Merchant Banking Information

The definition of merchant banking has changed greatly since the days of the first Merchant Banks. The great merchant banking families dealt in everything from underwriting bonds to originating foreign loans. Bullion trading and bond issuing were some of the specialties of Merchant Banks. The modern merchant banks, however, tend to advise corporations and wealthy individuals on how to use their money. The job of generating loans and initiating other complex financial transactions has been taken over by investment banks and private equity firms.

Today there are many different classes of merchant banks. One of the most common forms is primarily utilized in America. This type initiates loans and then sells them to investors . Even though these companies call themselves "Merchant banks," they have few if any of the characteristics of former Merchant banks.

A more traditional form of Merchant bank is not as widely used. This genre of merchant banking is seen in Modern Merchant banks. Their activities include private banking, fund management, and advisory services. Though these organizations are holding companies, their operations are essentially those of the original Merchant banks.

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