Investment banks handle large transactions and advise corporate clients, while commercial banks provide everyday financial services to individuals and small businesses. The main roles of investment banks are advising on mergers, acquisitions, and IPOs, while commercial banks accept deposits, provide loans and mortgages. Investment banking involves higher risks but also higher potential fees, while commercial banking has lower risks but earns profits from interest rate spreads on loans and deposits.

1. Difference bet Investment Banking Vs
Commercial Banking
• Investment Banking
• Investment banks handle large amounts of money and advise their
clients about sound investments. Commercial banks handle day-to-
day financial transactions and smaller credit requests for mostly non-
public borrowers.

2. Categories of Top Investment Banks
• Here are the rough categories: Bulge Bracket Investment Banks (BBs)
– JP Morgan, Goldman Sachs, and Morgan Stanley; Bank of America
Merrill Lynch and Citi; Credit Suisse and Barclays; Deutsche Bank and
UBS.

3. Working in Investment Bank
• Investment banks acts as Financial brokers for big corporates and they
help in IPO Process, merger and takeover, Asset management service.

4. What is the main purpose of investment
banks?
• The primary goal of an investment bank is to advise businesses and
governments on how to meet their financial challenges. Investment
banks help their clients with financing, research, trading and sales,
wealth management, asset management, IPOs, mergers, securitized
products, hedging, and more.

5. the three core responsibilities of an
investment banker?
• structure and negotiate the detailed terms of a deal, often in liaison
with other professionals. liaise with project teams in a deal to obtain
relevant specialist information and market intelligence. thoroughly
research market conditions and developments. identify new business
opportunities.

6. What role do investment banks play in the​
economy?
• Investment banks advise companies in major financial transactions
such as buying or selling companies or divisions. -Investment banks
assist companies in raising capital by issue of stocks and bonds on
behalf of corporate clients.

7. What is the purpose of a commercial bank?
• Commercial banks provide basic banking services and products to the
general public, both individual consumers and small to mid-sized
businesses. These services include checking and savings accounts,
loans and mortgages, basic investment services such as CDs, as well
as other services such as safe deposit boxes.
• Commercial Banks Deposit, mortgage loans and lending loans.

8. Example of Commercial bank
• State Bank of India
• HDFC
• Barclay
• Indian bank LTD
• ICICI, etc.

9. Risk Involved In Commercial Bank & Investment
Bank
• Commercial Bank Have Very Low risk
• Investment Bank Have Very High

10. How do they earn profit
• Difference between the lending and deposit rates
• Investment Banks
• Fees charged on different services
• Investment bank refers to a financial institution, that offers services
like underwriting of securities, brokerage services and so on.
Commercial bank is a bank that provides services like accepting
deposits, lending money, payment on standing order and many more.

11. What Role Do Commercial Banks Play in the
Economy?
• Commercial banks are crucial to the fractional reserve banking
system, currently found in most developed countries. This allows
banks to extend new loans of up to (typically) 90% of the deposits
they have on hand, theoretically growing the economy by freeing
capital for lending.

12. Thank You