A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to. In the United Kingdom, the term "merchant bank" refers to an investment bank.
Today, according to the U.S. Federal Deposit Insurance Corporation (acronym FDIC), "the term merchant banking is generally understood to mean negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies." Both commercial banks and investment banks may engage in merchant banking activities. Historically, merchant banks' original purpose was to facilitate and/or finance production and trade of commodities, hence the name "merchant". Few banks today restrict their activities to such a narrow scope.
Other articles related to "merchant bank, merchant, bank, banks, merchant banks":
... Gentlemen of Fortune The World's Merchant and Investment Bankers ... The Merchant Bankers ... Italian Merchant Bankers in Ireland in the Thirteenth Century A Study in the Social and Economic History of Medieval Ireland ...
... Union Bank of Jamaica in Jamaica was the result of a merger in 2000 of the business of four FINSAC controlled commercial banks and their three allied merchant banks ... Citizens Bank had started in 1967 as Jamaica Citizens Bank, the first Jamaican-owned bank ... The US bank, Citizens and Southern had taken a 49% stake, and local interests owned 51% ...
... People's Merchant Bank Merchant Bank of Sri Lanka Mercantile Merchant Bank Seylan Merchant Bank State Mortgage and Investment Bank (SMIB) Sterling Merchant Investment ...
Famous quotes related to merchant bank:
“O dark dark dark. They all go into the dark,
The vacant interstellar spaces, the vacant into the vacant,
The captains, merchant bankers, eminent men of letters,
The generous patrons of art, the statesmen and the rulers,
Distinguished civil servants, chairmen of many committees,
Industrial lords and petty contractors, all go into the dark....”
—T.S. (Thomas Stearns)