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?

 
Most Helpful

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 :)

 

Quis vero voluptate aliquid et enim. Et eligendi deserunt totam quod adipisci. Dolores optio ea fugiat. Quis qui cupiditate quisquam enim itaque.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (145) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”