Difference between commercial banking and merchant banking
Answers
Explanation:
Banks are termed as the financial institutions, which act as intermediaries between depositors and borrowers. Besides the usual function of accepting deposits and extending credit, many value added services are also provided by the banks. Indeed, there are different types of banks set up to perform different functions. 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. The article presents you the substantial differences between commercial bank and merchant bank, take a read.
Answer:
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