merchant bank

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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 banker feels that Reliance Jio has made tremendous progress with regard to its much-awaited 4G launch, having already garnered a data capacity market share of 20 percent.
AKCSL is a SEBI registered Category I Merchant Banker.
Sunil Mahtani, 26, couldn't cope with his merchant banker girlfriend earning more money than him.
MERCHANT banker Professor Ewan Brown is to be the new chairman of the TSB in Scotland.
By next week, we will be finalising the name of the merchant banker for a possible stake sale .
5bn (USD55m/EUR40m) long-term bank facilities of merchant banker AK Capital Services Ltd (BOM:530499).
PK) is planning to raise INR5bn by selling bonds, Dow Jones has reported citing a merchant banker familiar with the matter.
Big-hearted readers have donated more than pounds 50,000 to the George Thomas Hospice, and thanks to Valleys-born merchant banker Sir Julian Hodge, his bank will double that amount to more than pounds 100,000.
Lisa Sims, 30, wed merchant banker Keith Horlock at a country house in Kent last month.
The latest is English merchant banker Mark Holdsworth, named yesterday as Tory candidate for Glasgow Springburn.
5bn through a sale of bonds, Dow Jones Newswires has reported citing a merchant banker familiar with the matter.