Wholesale banking is a special service designed for big businesses and organizations. It helps these large groups with their financial needs, like getting big loans and managing their money.
Reference:
In finance, “wholesale banking” is a term used to describe banking services focused on serving the financial needs of large corporations, institutions, and big businesses. These services differ from what regular people or small businesses might use at local banks.
Example:
Let’s say there’s a massive company called MegaTech Inc. They want to build a new high-tech factory, which will cost them a lot of money—millions of dollars. Regular banks might not be able to lend them that much money. So, MegaTech Inc. turned into a wholesale bank.
The wholesale bank works closely with MegaTech Inc. and offers them a substantial loan, which is a big sum of money they can use to build their new factory. This loan is designed to meet the specific financial needs of a large business like MegaTech Inc.
But wholesale banking isn’t just about loans. These banks also provide services like helping companies manage their money efficiently, offering investment advice, and even assisting with complex financial operations like mergers and acquisitions. It’s like having a financial partner that understands the unique needs of big businesses.
In summary, wholesale banking is a specialized type of banking that serves the financial needs of large corporations and big businesses. They provide financial services, loans, and expertise tailored to help these companies manage their money and achieve their financial goals.