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 ?
KBB is a subsidiary of the 200-year old Kleinwort Benson, a leading merchant bank with principal activities in private banking, asset management and financial markets and corporate advisory services.
In 2013 European private-banking group Edmond de Rothschild won regulatory approval to launch a UK-focused merchant bank. Last year Robert Diamond, former CEO of Barclays PLC set up Atlas Merchant Capital in New York last year with former JC Flowers director David Schamis to invest in or advise banks and other financial firms.
FSDH would like to seize this opportunity to welcome its stakeholders to the continued experience with FSDH Merchant Bank Limited.
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. As such, we are forecasting renewed activity in the marketplace, particularly for deals in the $2 million to $25 million range.