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Corporate Banking - Essential Requirement of Large Corporations
By: Dagur Jonsson

The success of large corporations depends on a variety of factors. Generally proper planning, foresight, human resources and research are amongst the top most factors contributing to the sustained growth of a company. But in the current scenario with cut throat competition, changing or evolving technology, changes in requirements and needs of people or changes in business practices means for corporations to survive and maintain their position, they need much more than just planning and execution.

Corporate banking is one such factor which goes a long way in helping the growth of a large corporation. Corporate banking provides the comprehensive and sophisticated services that a large company requires in today’s business world.

Given the huge demand for a proper accountable banking service by these large corporations, most top banks of the world have a separate dedicated corporate banking operation which caters to the needs of companies that are quite different in requirements and scale as compared to an average small to medium enterprise.

Corporate banking requires a huge knowledge base and experience to service all requirements of commerce and industry. Corporate banking includes a huge selection of commercial and transactional products and services. Some of the typical corporate banking products and services include corporate funding or financing, bank guarantees, syndication services, foreign exchange services, investments, stocks, derivatives, comprehensive internet banking facilities etc.

Corporate lending, trade financing and commodity financing are also some important aspect of corporate banking:

Corporate lending: Big varieties of credit products are offered which includes revolving credit lines, term loans, and standby letters of credit and forex facilities. This sector also deals in arranging working capital lines, long term debt, acquisition finance, bridge financing and some other syndicated services.

Trade financing: this sector of banking provides very powerful trade services for the efficient movement of goods. This includes automated letter of credit system and documentary collection services.

Commodity financing: this banking sector is considered “the boss” of the industry when it comes to financing trade flows for some agricultural products such as grain, cotton, coffee, sugar, cocoa and a variety of other commodities. Short term and mid term credit facility is also available on going exchange related requirements.

From the corporate banks point of view, it is very essential to form teams to handle requirement of individual companies as personalized services are the pre requisite for handling such operations. Also corporate banking goes well beyond simply providing banking products and services to corporations. It involves lot of consulting and one on one interaction as well. Consulting services could be required on a range of issues like mergers and acquisitions, foreign trade, company liquidity etc.

Personalized Corporate banking services requires a team of highly skilled and highly pro active personnel who would be able to cater to all of the requirements of a corporate client, no matter how unique or difficult the requirement may be. Banking personnel should be able to pro actively find ways in which to complete the request of the client as it could make a lot of difference to the functioning and growth of the client’s business which is anyways the main reason they need specialized corporate banking services.

 





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