Corporate Banking
Corporate banking provides financial services and credit solutions to businesses and large corporations.
Meaning in Practice
Corporate banking includes lending, cash management, trade finance, and advisory services for companies. Transactions are typically larger and more customized than retail products. Revenue depends on corporate credit demand and market conditions.
Why It Matters
Corporate banking facilitates business investment and economic expansion. It connects banks to capital markets and global trade flows. Credit conditions in this segment influence corporate growth.
Market Impact
Changes in corporate credit quality affect bank balance sheets and risk-weighted assets. Economic downturns can increase default rates in corporate portfolios. Strong corporate lending supports economic momentum.
Example
A bank provides a syndicated loan to finance a company’s expansion project and offers treasury management services.