BANKING AFFAIRS

Detailed explanation-1: -A merchant bank is a financial institution that conducts underwriting, loan services, financial advising, and fundraising services for large corporations and high-net-worth individuals (HWNIs). Merchant banks specialize in international trade, providing services for multinational corporations.

Detailed explanation-2: -1. A merchant bank is a financial institution conducting money market activities and: a. Lending.

Detailed explanation-3: -Known as “accepting and issuing houses” in the UK and “investment banks” in the US, modern merchant banks offer a wide range of activities: issue management, portfolio management, credit syndication, acceptance credit, counsel on mergers and acquisitions, insurance, etc.

Detailed explanation-4: -Investment banks conduct trade finance activities while merchant banks take part in international finance and underwriting activities.

Detailed explanation-5: -The primary characteristics of merchant banking include a quick decision process, high density of information, loose organisational structure, the concentration of short and medium-term engagements, emphasis on fee and commission income, low-profit distribution rate, high liquidity ratio, and more.