Merchant banks cater to large, private corporations and high-net-worth individuals, offering complex financial solutions. They don’t offer traditional deposit accounts like retail banks but help businesses grow and restructure through financing, advisory services, and investments. Merchant banks serve as a bridge between retail banks and investment banks, catering to businesses with unique financial needs.

Services provided by merchant banks include investing in private companies, advising on financial decisions, fundraising and financing, loan syndication, currency exchange, trade finance, and portfolio management for institutional investors. They focus on helping businesses with complex financial needs grow and succeed.

Merchant banks differ from retail and investment banks in their targeted audience and services offered. Retail banks serve individuals with deposit accounts and everyday banking needs, while investment banks primarily serve public companies. Merchant banks work with private companies, offering a range of complex financial services to help them achieve their business goals.

Merchant banks generate revenue through fees for services like advising, underwriting, and financing, as well as through returns on their own investments. They play a crucial role in supporting the growth and success of large businesses and high-net-worth individuals by providing tailored financial solutions.

Read more at Yahoo Finance: What is a merchant bank?