Corporate Bank: Definition & Functions

Key Services Offered by Corporate Banks

1. Business Loans & Credit Lines – Providing working capital loans, term loans, and revolving credit.

2. Trade Finance – Supporting international trade with letters of credit, export financing, and foreign exchange services.

3. Treasury & Cash Management – Managing a company’s liquidity, cash flow, and financial risk.

4. Investment Banking Services – Assisting in mergers, acquisitions, and capital raising (often overlaps with investment banks).

5. Risk Management & Hedging – Offering tools like derivatives to protect businesses from currency fluctuations, interest rate risks, etc.

6. Asset & Wealth Management – Helping corporations manage their financial assets and investments.

Corporate Banks vs. Commercial Banks

• Corporate Banks deal with large businesses and institutions.

• Commercial Banks serve individuals and small businesses.

Examples of Corporate Banking Divisions

• JPMorgan Chase (Corporate & Investment Bank)

• Citibank (Citi Commercial & Corporate Banking)

• HSBC Corporate Banking