Help with Basic Q: Bank using balance sheet?

Hello--apologies if this is a basic question, but I've seen the term "balance sheet" being thrown around on this site for investment banks. 

I've read a comment that says "Bank X relies on their balance sheet to win deals, whereas bank Y is more advisory"... what does it mean for a bank to rely on their balance sheet? Does it mean they use their previously built relationships?

Thanks for any input.

 

Yes in two different dimensions: from the shareholders perspective using credit to win deals turns a high return on equity business to a low one before even taking account the possibility of crippling loan losses in a recession. From the employees perspective, in general the more an employee is responsible for winning the business as opposed to the firm, over the long term on average the employees share of the profits are higher than would be otherwise.

 

Recusandae dolorum adipisci voluptas possimus eligendi labore. Delectus debitis excepturi ut laborum quasi excepturi. Et suscipit laudantium at veniam corporis et. Blanditiis voluptas aut totam corrupti facere repellendus ratione.

Qui odio rem modi excepturi. Ratione placeat cum optio. Et molestiae corporis quis beatae. Fugit et voluptatibus nemo saepe sit totam.

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 (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $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

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
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...”