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

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 Scepter Partners, a merchant bank that touted its access to wealthy families throughout Asia, was willing to put as much as $3 billion in Mr. Dougan’s venture and other international investments. Liz Hoffman, WSJ, "Brady Dougan Stages His Wall Street Comeback," 28 Sep. 2018 Since opening its doors as the Australian subsidiary of London merchant bank Hill Samuel & Co. at the end of 1969, Macquarie has recorded 49 years of unbroken profitability. Robb M. Stewart, WSJ, "Macquarie Taps Asset Management Head to Succeed CEO," 26 July 2018 Former hedge fund manager Mike Novogratz shelved plans to launch a crypto fund in December, shifting his efforts to a merchant bank focused on cryptocurrencies and ventures based on related technologies., "Powell: Moderate Wage Gains Show Job Market Not Excessively Tight," 6 Apr. 2018 Alfen Beheer BV, which makes charging stations for electrical vehicles, on Thursday became the third company this week to announce its intention to list in Amsterdam, joining merchant bank NIBC Holding NV and wholesaler B&S Group Sarl., "Amsterdam Prepares for Bumper Crop of IPOs," 2 Mar. 2018 The global merchant bank joins A+E Networks as a backer of the indie studio. Georg Szalai, The Hollywood Reporter, "Ben Silverman and Howard T. Owens' Propagate Gets Raine Group Investment," 16 Jan. 2018 Billionaire Mike Novogratz, who shelved his plans to open a $500 million cryptocurrency hedge fund and instead wants to build a crypto merchant bank, warned that Bitcoin would fall to as low as $8,000. Fortune, "Bitcoin Newbies Are Getting Crushed," 3 Feb. 2018 Hunt and Sean Conlon, the chairman of merchant bank Conlon & Co. who advises Hunt on his real estate, declined to comment on the Nobu deal. Ryan Ori,, "Nobu Hotel in Fulton Market selling before it's built," 8 Dec. 2017

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

6 Feb 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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