merchant bank


Definition of merchant bank

chiefly British
: a bank that specializes in bankers' acceptances and in underwriting or syndicating equity or bond issues

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Other Words from merchant bank

merchant banker noun
merchant banking noun

Examples of merchant bank in a Sentence

Recent Examples on the Web

The tech that helps stores track us often comes from card-swipe machines and the merchant banks that process transactions for them. Anchorage Daily News, "The spy in your wallet: Credit cards have a privacy problem," 2 Sep. 2019 Point-of-sale systems and retailer banks The tech that helps stores track us often comes from card-swipe machines and the merchant banks that process transactions for them. Geoffrey A. Fowler, The Denver Post, "The spy in your wallet: Credit cards have a privacy problem," 31 Aug. 2019 Byron Trott, the founder of merchant bank BDT Capital Partners, who has worked with Koch Industries for more than 25 years and advised on several acquisitions, doesn’t see the Kochs’ company running into the same problems. Tom Maloneybloomberg, Los Angeles Times, "Koch Industries bets on tech: ‘Do it or we’ll end up in the Dumpster’," 19 Aug. 2019 Propagate Media, run by Howard Owens and Ben Silverman and backed by merchant bank The Raine Group, recently took a majority interest in Artists First, home to Tiffany Haddish. Tatiana Siegel, The Hollywood Reporter, "For Hollywood Talent Managers, Outside Investors Bring Issues of Control," 31 July 2019 Imagine investors now include Raine, a media-focused merchant bank that has put in at least $125 million. Brooks Barnes, New York Times, "Ron Howard and Brian Grazer Want to Be the Center of the Streaming Era," 1 Aug. 2019 Mike Novogratz, CEO of Galaxy Digital, a crypto merchant bank, suggested that Libra may eventually abandon its peg, just like the US dollar ditched the gold standard in 1971. Matthew De Silva, Quartz, "Where will Facebook’s Libra be in six months?," 3 July 2019 The third addition to the LACMA board is Robbie Robinson, a partner at the merchant bank BDT & Co. Deborah Vankin,, "LACMA board additions include Lucas Museum co-founder Mellody Hobson," 17 June 2019 Raine, a New York merchant bank focused on media, technology and telecommunications, invested $100 million. Juliet Chung, WSJ, "Moonbug Raises $145 Million In Funding For Kids’ Programs," 17 Dec. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'merchant bank.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of merchant bank

1620, in the meaning defined above

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Statistics for merchant bank

Last Updated

12 Sep 2019

Look-up Popularity

Time Traveler for merchant bank

The first known use of merchant bank was in 1620

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More Definitions for merchant bank

merchant bank


Financial Definition of merchant bank

What It Is

A merchant bank is a financial institution that engages in underwriting and business loans, catering primarily to the needs of large enterprises and high net worth individuals. In the British market, the term merchant bank refers to an investment bank.

How It Works

Like investment banks, merchant banks are not depository/retail lender institutions. Rather, merchant banks are intermediaries that provide brokerage, fund-raising, and financial advisory services on a large scale to businesses and a smaller scale to wealthy individuals. For this reason, they often assist in international transactions involving entities such as multinational corporations.

To illustrate the role of a merchant bank, suppose a multinational corporation XYZ is considering the purchase of a smaller company in another country. Company XYZ will likely solicit the services of a merchant bank for advice on how to best approach the acquisition process. In addition, the merchant bank may also assist in the financing of the acquisition, providing underwriting or loan services.

Why It Matters

Merchant banks play a similar role to that of investment banks, but perform on the international level. Consequently, while they assist in raising funds for large companies, they also assist in transactions across national borders.

Source: Investing Answers

merchant bank


English Language Learners Definition of merchant bank

chiefly British : a bank for large companies that trade goods in other countries

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Comments on merchant bank

What made you want to look up merchant bank? Please tell us where you read or heard it (including the quote, if possible).


authorized for issue (as a bond)

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