Definitions for "Merchant Banking"
A bank that primarily serves corporate clients and offers a range of services including investment banking, international trading and other fee-based services. Merchant banks rarely accept credit risk and usually provide fee-based services.
A form of banking where the bank arranges credit financing, but doesn't hold loans until maturity. A merchant bank invests its own capital in leveraged buyouts, corporate acquisitions and other structured financial transactions. It is a fee-based business, in which the bank assumes market risk but no long-term credit risk.
Merchant banks offer consultancy services for mergers and acquisitions and financial restructurings, and the associated financing (raising the necessary funds).