24 October 2009
A merchant bank deals with the commercial banking needs of international finance, long-term company loans, and stock underwriting. This type of bank does not have retail offices where a customer can go and open a savings or checking account. A merchant bank is sometimes said to be a wholesale bank, or in the business of wholesale banking. This is because merchant banks tend to deal primarily with other merchant banks and other large financial institutions.
26 October 2009
Thanks for your reply. It means that merchant banks provide loans and other facitlities to other commmertial banks and financial institutions and any ordinary customer can't approach merchant bank for his financial need or purpose.
CAclubindia
