Banks are one of the most constant financial institutions created by man to help in his development and the management of his investments. Banks correspond to the clients and their transactions. Banks are expected to be honorable and honest in their activities. Because a lot of different economic activities are catered by the banks, it became essential to separate them across a thin border line that would specify their services and transactions. Hence, banks of diverse interests were born.
Among the many banks that serve assorted clients, it was again obligatory to differentiate the kinds of clients that the banks handle in order to provide a particular choice that would be most favorable to both the bank and the customer. Banks that provide their services to the general public and mid-market businesses can be classified as retail banks while those that offer their services to business corporations and companies can be classified as corporate banks. Also, those banks that are most competent in dealing with the features of the financial market can be categorized as investment banks. Eugene Bernshtam’s official recognition qualified him directly out of college to work for a post in an investment banking company.
Banks with corporate investment banking services can then be construed as those that are proficient in financial market transactions, which involve corporations and businesses. These corporate investment banks act as the arrangers of transactions and the middle agents and acquisitions of controlling interests in several established companies, which are generally operating on an international scale. These banks mostly focus on multiplying and developing the invested capital lawfully while maintaining the security that the customers need.
Those who are in corporate investment banking have an extensive range of clients. Hence, they have lot of errands that involve all the characteristics of corporate transactions. Growing businesses will profit from the assistance that the corporate investment banks can confer on them. At the same time, the large-scale corporations and middle-market companies can handle securely with the assistance of these banks.
The diverse financial services that included in corporate investment banking can include exclusive sales and divestitures, merger advisory and buy-side and sell-side advisories. The promotion of cash and securities and trading comprise the sell side while different transactions involving the clients who want to maximize their profits on the investments encompass the buy side.
The corporate clients invest in the bank, takes the risk of investing the clients’ investments in the ever-capricious world of the monetary market. This is a giant risk for the bank to take on behalf of its customers because it stands to lose its reputation and its money if its transactions are flawed. This can take the type of various investment management advisories and programs that would aid the clients maintain security in their purchased bonds and shares to meet the particular goals that these clients targeted. The main principle is to shelter the clients and their investments.
According to Eugene Bernshtam, a good corporate investment bank provides the clients a continuous risk management support. This support assists the clients solve and analyze the various risks that they are going to experience in order to prevent flawed trades.