The 8 Defining Features of Corporate Bank Operations

Corporate Bank operations are financial operations that involve large-scale companies, government organizations and other significant institutions. They are conducted by both retail and investment banks, and many of those banks are large national or international entities. Many of those operations are general banking activities such as deposit taking, lending and e-banking. Others, however, are more specifically tailored to their corporate clients’ needs. And while the specifics of those corporate bank operations vary with each bank, but all have certain common features.

International Transactions

Banks can facilitate foreign exchange transactions and provide trade financing. They can also work to protect their customers by mitigating the impact of currency and price fluctuations.

Investment Banking

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Project Financing

Banks offer loans for large-scale projects, particularly infrastructure projects. Those loans are repaid based on the revenue the project winds up generating. If the project is deemed particularly risky, a group of banks can agree to lend the client portions of the required loan. That way, if the risk doesn’t pay off, the fallout is reduced for every bank involved.

Insurance

Banks offer insurance to their large-scale clients. The insurance can cover corporate activities, as well as staff and management.

Advisory Services

Banks offer financial advice for an assortment of corporate and financial activities. That includes:

  • Mergers and acquisitions
  • Asset management
  • Taxation issues, such as using tax havens.
Corporate Brokerage Services

Banks offer corporate brokerage services, negotiating financial transactions, particularly mergers and acquisitions. This can include working with clients that want to either:
  • sell off all or part of their businesses
  • acquire businesses and parts of the businesses
  • raise the funds necessary to make the above-mentioned transactions successful
Shareholding

Banks can manage and own shares of their client companies. This is usually done to assist financially distressed companies. Buying shares can provide it with extra liquidity.

Asset Custody

Banks can protect their clients’ corporate assets. This includes setting up accounts to store them, making regular audits to make sure that they remain intact and issuing reports that assess the assets’ status on annual bases.


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