merchant bank

noun

Definition of merchant bank 

chiefly British

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

Keep scrolling for more

Other Words from merchant bank

merchant banker noun
merchant banking noun

Examples of merchant bank in a Sentence

Recent Examples on the Web

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. Bloomberg.com, "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. Bloomberg.com, "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, chicagotribune.com, "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.

See More

First Known Use of merchant bank

1620, in the meaning defined above

Keep scrolling for more

Learn More about merchant bank

Share merchant bank

Statistics for merchant bank

Look-up Popularity

Time Traveler for merchant bank

The first known use of merchant bank was in 1620

See more words from the same year

Keep scrolling for more

More Definitions for merchant bank

merchant bank

noun

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

noun

English Language Learners Definition of merchant bank

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

More from Merriam-Webster on merchant bank

Britannica.com: Encyclopedia article about merchant bank

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).

WORD OF THE DAY

not any or not one

Get Word of the Day daily email!

Test Your Vocabulary

Great Scrabble Words—A Quiz

  • scrabble-tiles-that-read-scrabble-quiz
  • Which of the following Q-without-U words means the number five in cards or dice?
True or False

Test your knowledge - and maybe learn something along the way.

TAKE THE QUIZ
Word Winder's CrossWinder

Test Your Knowledge - and learn some interesting things along the way.

TAKE THE QUIZ

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!