merchant bank

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Related to merchant banks: merchant bankers, Commercial banks

Merchant bank

A British term for a bank that specializes not in lending out its own funds, but in providing various financial services such as accepting bills arising out of trade, underwriting new issues, and providing advice on acquisitions, mergers, foreign exchange, portfolio management, etc.

merchant bank

An investment bank that commits its own funds by taking a creditor position or equity interest in another firm. For example, a merchant bank may provide temporary financing for a leveraged buyout.

merchant bank

a BANK which offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance, in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have extended their interests variously into investment management, stockbroking, MARKET MAKING and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and share issues on behalf of corporate clients (see SHARE ISSUES) and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM, INVESTMENT BANK.

merchant bank

a BANK that offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have variously extended their interests into investment management, stockbroking, market-making (see MARKET MAKER) and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and SHARE ISSUES on behalf of corporate clients and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM.
References in periodicals archive ?
The merchant bank typically works off a profit-participation model versus a conventional interest rate calculation.
Where the merchant banks have been even more successful, has been in their ability to lure huge sums of capital into the market.
But I am repeatedly asked how real estate merchant banks differ from Real Estate Investment Trusts (REITs).
Unlike a REIT, merchant banks are not "forced" to buy because they are sitting on a pool of money.
In 1994 we will see a significant rise in the amount of foreign capital that flows through real estate merchant banks.
These high-net-worth investors and corporations not only like the fact that the merchant bank takes its own position, but they also like the returns.
Today, investors in merchant bank deals are realizing returns in excess of 100-percent in 12-18 month periods of time.
E & E is a merchant bank which provides bridge loan services to and invests in emerging growth companies.
This allows payment outsourcers to offer customers the flexibility to work with the merchant banks of their choice with minimal overhead and operating complexity.
PaylinX has Payment Pipe connections to processors/ merchant banks estimated to represent 90 percent of the U.
The PaylinX payment server is a robust transaction processing platform that operates behind the scenes to authorize and settle credit card and other payment transactions in real-time through built-in connections with third-party processors and merchant banks, all in seamless integration with legacy front-end, customer relationship and financial management systems.