The full form of IB in banking is Investment Bank.
Understanding Investment Banking
An Investment Bank (IB) provides specialized banking and financial services to wholesale clients, rather than retail customers. These banks can operate as independent entities or as divisions within larger banking groups.
Services Offered by Investment Banks
Investment banks provide a range of specialized services, including:
- Underwriting: Assisting companies in issuing and selling securities in the capital markets.
- Mergers and Acquisitions (M&A): Advising companies on buying, selling, or merging with other businesses.
- Sales and Trading: Facilitating the buying and selling of securities for institutional investors.
- Research: Providing analysis and recommendations on securities and markets.
Investment Banks vs. Retail Banks
| Feature | Investment Bank | Retail Bank |
|---|---|---|
| Target Clients | Corporations, governments, and institutions | Individuals and small businesses |
| Services | Underwriting, M&A, sales & trading, research | Checking accounts, loans, credit cards |
| Focus | Complex financial transactions | Basic banking services |
