Investment Banking vs Commercial Banking: Understanding the Key Differences
1. Introduction to Banking Sectors 1.1 Definition of Banking Banking is a crucial element of our economy, serving as a bridge that connects individuals, businesses, and governments to the financial resources they need to grow and thrive. Banks facilitate savings, provide credit, and offer a variety of financial services that help keep the wheels of commerce turning smoothly. 1.2 Types of Banks There are several types of banks, each serving different functions. The main categories include: Retail banks : These serve everyday customers, offering checking and savings accounts, loans, and basic financial services. Commercial banks : Their focus is on providing services to businesses, from lending to cash management solutions. Investment banks : Their service is for corporations and governments, specializing in capital raising and advisory services such as mergers and acquisitions. 1.3 ...