Wholesale Banking

Q.  Which of the following focuses on the financial needs of the institutional clients and the industry?
- Published on 13 Feb 17

a. Universal Banking
b. Virtual Banking
c. Wholesale Banking
d. Retail Banking

ANSWER: Wholesale Banking
Wholesale banking is the provision of services by banks to organizations, such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions.

Wholesale banks mainly engage in:
  • Finance wholesaling
  • Underwriting
  • Market making
  • Consultancy
  • Mergers and acquisitions
  • Fund management
Retail banking is also known as Consumer Banking is the provision of services by a bank to individual consumers.

The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking.

It may also be used to refer to a division or department of a bank dealing with retail customers.

Typical products offered by a retail bank include:
  • Transactional accounts
  • Current accounts, Savings accounts
  • Debit cards, ATM cards, Credit cards
  • Traveler's cheque
  • Mortgages, personal loans
  • Home equity loans
  • Certificates of deposit/Term deposits

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