Came across one of their articles calling HSBC a BB, just curious if there're many people who think that's right
Trending Content - Investment Banking Forum
| +183 | Return Rates For Interns Are Falling? | 77 | 10m |
| +128 | UBS Americas IB: The Kids’ Table of Wall Street | 16 | 20h |
| +99 | I am a drunk MD AMA | 37 | 3h |
| +76 | London IB BB is a challenge | 41 | 16h |
| +63 | VP Lifestyle at Top BB Coverage Groups | 40 | 5h |
| +63 | KISSED MY VP… HELP!!! | 15 | 2h |
| +57 | An Outsider’s View of RX Banking Out of College | 7 | 6h |
| +49 | SharePoint makes IB hours HELL | 15 | 2d |
| +46 | UBS Offer Day | 18 | 4h |
| +43 | momentum of Rx groups | 16 | 10h |
Career Resources
It's not a BB to anyone who matters, at least not in the West.
Investopedia is written by contributors. I’ve read an article regarding how banks make loans that was completely wrong, it asserted that banks lend out consumer deposits, which is not true.
I think it’s a good start to learn common terms, or how certain financial instruments or securities work, but important to keep in mind that you might have to consult other sources
I assumed commercial banks use deposits (& other revenue sources) for their loans—enlighten me more
A common misconception most believe is that they think Joe goes to his local bank, deposits $100, then the bank takes that same $100 and loans it out to Jane at 8% while paying Joe 1%. Banks are not loaning out consumer deposits. They can’t. Every single loan made is money that the bank created out of thin air, and as loans are amortized, or paid back, the money is “destroyed”. That’s why to boost a slow economy or fight deflation, central banks will cut rates to encourage borrowers to borrow more, and banks to “create” more money to meet that demand, and central banks do the opposite to take money out of the system.
Deposits matter because under our fractional reserve banking system they determine how much a bank can lend out. The more deposits a bank holds, the more loans it’s legally allowed to make.
HSBC falls into a weird category of foreign balance sheet banks that aren’t boutiques (the boutiques can’t use their balance sheet to lend) but aren’t quite bulge bracket because their stand alone investment banking practices aren’t built out enough. Would put them in the same category as Nomura, Mizuho, etc
If it helps, there are generally multiple types of banks here: the asian banks, the european banks, and the canadian banks.
Asian banks: HSBC, MIzuho Nomura, SMBC
Euro: Soc Gen, Santander (DB and Barclays are euro and considered BBs)
Canadian: BMO, RBC
RBC has a much more built-out IBD than anyone else on this list. If you're considering DB as a BB, then RBC is also one for sure.
Yeah, and even within these there are some pretty known tiers. I think most people recognize Nomura as slightly stronger in IB than Mizuho or MUFG, Santander as a small notch above SocGen or Credit Agricole, etc.
Veritatis vero in et ratione aliquid ut quo. Aspernatur necessitatibus est dolor nihil. Sed atque consequatur et aut eos. Et accusantium reprehenderit alias modi et doloremque. Enim ut et illum esse. Hic animi aliquam sit est consectetur ad. Qui omnis ut ea qui. Nam amet voluptatem quo iure qui.
Suscipit vel porro occaecati. A eius aperiam officia vel.
Rem sit rem quibusdam nam praesentium. Quia ad expedita sequi error officiis rem libero rerum.
Numquam alias vero voluptates qui ut tempora et. Fugit accusantium atque est magnam. Velit ut mollitia accusantium. Doloribus aliquid atque voluptate et earum asperiores. Repellat inventore itaque ut ratione hic qui. Perferendis pariatur pariatur laudantium quia. Omnis quis quisquam et sapiente.
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...