Difference between Commercial Banking and Merchant Banking


Although commercial banking and merchant banking come under the banking sector, the purpose and the services provided by both are entirely different. Commercial banks serve the requirements of the general public, like individuals, small-scale entrepreneurs and so on. However, merchant banks, generally called investment banks tend to serve mostly the needs of large corporations or very rich people.

Commercial banking courses and career opportunities

Various Universities offer a wide range of commercial banking courses. Aspirants can pursue the graduate and postgraduate courses in the relevant fields with specializations of their choice. Since it is a developing industry, so many opportunities are also prevailing in the commercial banking sector. All the postings in commercial banks are made through competitive tests. Those who complete the PhD or M.Phil programs in commercial banking can seek out for career in the sector as research analysts. A pass in the intermediate exam is a prerequisite for the entry-level jobs in commercial banks. Professionals can get placements in the higher posts of banks through promotions and according to their seniority. Those who have completed the course can search out for employments in banks from entry-level leasing agents to international finance officers and much more.

Merchant banking courses and career opportunities

As there are so many courses in merchant banking, aspirants can choose their interesting topics in merchant banking for study. There are Bachelors’ and Masters’ programs in concerned areas. Aspirants can pursue the program in an acknowledged University. Those who are interested in doing MBA, can pursue the same with specialization in merchant banking. Various institutes also provide short-term Certificate programs in merchant banking for working professionals. On completion of the programs, they can seek out for occupations in public or private undertakings. Most of these merchant bankers find jobs in investment banking sector, Corporate Finance, Capital Markets, Equity and Fixed Income Research and so on.

Key differentiators between Commercial Banking and Merchant Banking

Commercial banks verify and uphold savings accounts of individuals; provides loans and mortgages to individuals or small-scale businesses. But, merchant banks operate as fiscal consultants to large-scale companies. Commercial banking is usually reachable to everyone for elementary banking requirements, whereas merchant banking is concerned to hand out primarily large corporations and very wealthy persons.



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5 Responses to “Difference between Commercial Banking and Merchant Banking”

  1. 5
    harshali kothekar:

    I am a HSC MCVC( accountancy) student. can i do graduation with merchant banking ?

  2. 4

    plz tell me difference between merchant banking , investment banking and commercial banking with example

  3. 3

    What five differences between commercial and merchant bank

  4. 2
    Samir A. Gopal:

    I have appeared the TYBCOM - Banking & Insurance exam in March-2011. I had done this course from Mulund College of Commerce, Mulund Mumbai. Please advise me i.e. which course I can choose further for my better career. I am from middle class family.

  5. 1
    anil kumar maurya:

    i have open a student account in PNB so which facility should i get for opening student A/C.