Areas of investment banking
Similarities exist as the two divisions often work alongside each other as part of the broader capital markets platform.
However, corporate banking is primarily focused on recurring relationship management via credit while investment bankers are more focused on idea generation and corporate finance advisory..
Areas of investment banking
The investment principle specifies that businesses invest only in projects that yield a return that exceeds the hurdle rate.
The financing principle suggests that the right financing mix for a firm is one that maximizes the value of the investments made..
Is corporate banking corporate finance?
What is Corporate Banking? Corporate banking is also known as corporate financing.
Corporate banking caters to large-scale companies and businesses..
What is corporate lending in investment banking?
Corporate lending refers to the loans given by financial institutions, commonly banks, to companies (instead of individuals – retail lending) to fund their businesses.
The loans are typically much bigger than retail loans and funding is generally provided by the larger banks who are lending specialists..
What is the corporate structure of an investment bank?
Investment banks are typically split up into three distinct parts: the front office, middle office, and back office.
The front office is where the bank generates its revenue.
It has three primary divisions: investment banking (I-bank), sales and trading, and investment research..
