Commercial banking or business accounts are often more expensive than traditional bank accounts. Banks may charge fees for night deposits, for processing a certain number of checks and for the Payroll Services. Depending on the size of your business, some of the services offered may not be needed, and you may still be charged for the services even if you're not fully using them. Different banks may offer different services and charge different fees, and it can be difficult to compare the services. Signing up for a commercial account before your business is ready for one will cost you and may slow the growth of the business. If you choose the wrong bank, you may have a difficult time opening a new account and transferring all of the services to another bank. This can cost you both time and money.
objective of merchant banking
merchant banking example
The problem with merchant banking is not allowing youthful professionals into the merchant banking business. Even though merchant banking is vast it needs more acceptable expertise to provide more services.
Merchant banking provides services that businesses need. One disadvantage to merchant banking is that it is a little more expensive than personal banking,
The scope and nature of merchant banking in India is investment banking. A merchant banker is used as an intermediary to match a company that needs capital to those that have capital.
Merchant Banking is commercial banking and investment banking for commercial entities, such as factoring, a forfait, placement of equity and debt, merger & acquisition etc. It is not your general bank account, credit cards or mortgages
scope
Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"
Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant"
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Merchant Banking refers to negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies. A bank that offers these services is called a merchant bank. Both commercial and investment banks may engage in merchant banking activities. The original purpose of merchant banks was to facilitate and/or finance production and trade of commodities and hence the name "merchant" Commercial banks are the normal banks that provide day to day banking services like checking/saving accounts, fixed deposits, loans etc.
An example of merchant banking is where a multinational corporation, say ABC is considering to purchase a smaller company in a foreign country, company ABC will seek the services of a merchant bank to advise it on the acquisition process.