Other forms encompass a variety of financial services beyond investment banking.

Corporate Banking

Corporate banking is a division in a bank responsible for providing lending and ancillary services to large corporate and government clients.

Primary Products

• Revolvers: Revolving credit facilities provided to companies that allow borrowers to draw and repay funds multiple times, up to a certain limit, over a specified period; essentially, a credit card for companies
• Term Loans: Lump-sum loans with set repayment schedules, often used for various financial needs such as capital expenditures, mergers and acquisitions, and recapitalizations

Roles of a Bank

• Lead Arranger: Arrange and coordinate loans for borrowers; typically, in charge of underwriting and syndication
• Agent: Serve as representatives in managing loans, including collecting and distributing payments to lenders
• Administrator: Provide administrative support for the loan such as payment processing and reporting

Recruitment in corporate requires a deep understanding of credit, creditworthiness, loan origination, and the core offerings of a corporate bank. Candidates should also expect basic accounting and financial statement analysis questions that are commonly found in standard investment banking interviews.

Corporate banks are segmented by industry verticals, it may be important to understand why different clients will require debt products.

As opposed to investment banking, corporate banking focuses on longer term relationships, rather than transactions.

See the Sell Side Handbook’s guide to corporate banking for more.

Commercial Banking

Commercial banking caters to small businesses by offering a range of financial services, including commercial loans for operational funding, lines of credit for flexible cash access, and cash management solutions to enhance cash flow and payment management.

Unlike corporate banking, commercial banks tend to prioritize lending decisions based on the borrower's creditworthiness rather than considering project opportunities.