Question

Commercial banking and merchant banking difference?

Answer 1

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Commercial bank is a banking company established by a number of people for providing the basic banking functions i.e. accepting deposits and lending money to general public. Merchant bank refers to the financial institution, that specializes in international trade and provide and array of services to its clients.

Answer 2

Answer:

1. Commercial banks are the banks that provide services to the general public and companies as well.On the other hand, merchant banks are similar to investment banks as they do not provide regular banking services, rather deals with commercial loans and investment avenues.

2. commercial banks are regulated by Banking Regulation Act, 1949 whereas Merchant banks are regulated on Rules and regulations designed by SEBI.