Corporate Banking vs IB
What's the difference between Corporate Banking and IB specifically in BofA? They seem to be paired together under Global Corporate & Investment Banking but how do they differ?
What's the difference between Corporate Banking and IB specifically in BofA? They seem to be paired together under Global Corporate & Investment Banking but how do they differ?
Career Resources
Corporate banking is lending money to corporates (revolving credit facilities, term loans, etc). It's not the same as investment banking. They are under the same umbrella because IB uses corporate banking to get deals.
Hey- currently a Corporate Banking intern at a CIB bank. Here is what I understand:
Corporate Banking mainly involves the credit side and lending to clients. They are the key relationship holders in CIB banks and the majority of banking relations stem from the lending relationship. After the bank lends to a client and builds up a relation, the client seeks this same bank for its other ancilary business which may be more profitable such as M&A/advisory (Investment Banking). Usually, depending on the client ofc, the banks will offer credit/loans at fairly cheap rates to establish these relationships. This loss leading strategy is what banks typically use to build up a clientele.The Corporate Banker is has to have knowledge about all products the bank offers so that it can talk to and liase with the client about any ancilary business. Also, CIB Corporate Bankers get involved in credit modelling/analysis to justify whether to lend to a client or not and work closely with the risk teams. This modelling is not as intensive as the modelling done in IB but can get complex depending on the deal type. IB on the other hand, focuses soley on advisory services which is usually the most profitable area(s) for a Bank, and is not as involved in the relationship aspect as above. They pitch to potenital clients to win mandates through creating presentation decks and once one is appointed, this is where the heavy hours come in as the modelling work begins and you have to be at the client's call at all times pretty much. Corp bankers and Inv Bankers usually work very close together to idenify cross sell opportunities within the bank. For eg. if a client is undertaking a merger and would like to borrow acquision finance, then the IB team and CB teams work together to put together the deal.
Hope this helps :)
Et ad ullam exercitationem ut voluptatem. Atque officia maxime atque eligendi iure possimus animi. Sed magni dicta similique eveniet occaecati voluptatibus non. Quia sunt nisi hic minus facere rerum corporis. Quidem fuga cumque quas accusantium qui aut.
Inventore possimus et dicta esse enim quod. Ullam impedit numquam sequi sapiente quasi et. Sapiente deserunt id ipsum.
Molestiae vel sunt deserunt a quidem adipisci aut. Temporibus expedita quidem animi iure. Consequuntur similique ullam totam itaque dolores illum quia. Id eaque quas quidem quo ipsa temporibus deserunt. Beatae quas impedit totam architecto ut aperiam.
Necessitatibus suscipit molestiae ducimus officia. Pariatur optio et enim non dignissimos porro. In quibusdam ducimus qui laudantium dolorem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...