Hi shoaib!!
To ilustrate the difference between a commercial bank and an
Investment bank I will start with the definitions:
Commercial Banks:
"The official definition of a commercial bank is a privately-owned
institution that accepts demand deposits and makes commercial loans.
Demand deposits are money people leave in an institution with the
understanding that they can get it back at any time. Commercial loans
are simply loans to businesses. This action of taking deposits and
making loans is called financial intermediation."
From "WHAT IS A BANK?":
http://www.pacb.org/pacb_h08.htm
Investment Bank:
"An Investment Bank is a financial institution which provides services
in the issuance of securities, brokerage and asset management.
Commercial banks are not empowered to carry out all of the above."
From "What is an Investment Bank?":
http://www.geocities.com/ibr_remote/reference/What_is_an_Investment_Bank.htm
"Typically, an investment banking group nowadays provides world-wide
some or all of the following services, either in divisions of the bank
or in associated companies within the group:
-Corporate Finance and advisory work, normally in connection with new
issues of securities for raising finance, take-overs, mergers and
acquisitions;
-Banking, for governments, institutions and companies;
-Treasury dealing for corporate clients in currencies, with financial
engineering services to protect them from interest and exchange rate
fluctuations;
-Investment management, either for corporate pension funds, charities,
private clients, either via direct investment for the more wealthy or
via unit and investment trusts. In the larger firms, the value of
funds under management runs into many billions of pounds;
-Securities trading, in equities, bonds or derivatives and offering
broking and distribution facilities."
From "A Career in Investment Banking":
http://www.ca.courses-careers.com/banking.htm
Now the difference:
"...the difference between how a typical investment bank and a typical
commercial operate bank is simple: A commercial bank takes deposits
for checking and savings accounts from consumers while an investment
bank does not...
A commercial bank may legally take deposits for checking and savings
accounts from consumers...The typical commercial banking process is
fairly straightforward. You deposit money into your bank, and the bank
loans that money to consumers and companies in need of capital (cash).
You borrow to buy a house, finance a car, or finance an addition to
your home. Companies borrow to finance the growth of their company or
meet immediate cash needs. Companies that borrow from commercial banks
can range in size from the dry cleaner on the corner to a
multinational conglomerate...
An investment bank operates differently. An investment bank does not
have an inventory of cash deposits to lend as a commercial bank does.
In essence, an investment bank acts as an intermediary, and matches
sellers of stocks and bonds with buyers of stocks and bonds. Note,
however, that companies use investment banks toward the same end as
they use commercial banks. If
a company needs capital, it may get a loan from a bank, or it may ask
an investment bank to sell equity or debt (stocks or bonds). Because
commercial banks already have funds available from their depositors
and an investment bank does not, an I-bank must spend considerable
time finding investors in order to obtain capital for its client."
From "Investment Banking", I recommend to you to take a view on this
document, in particular the firsts chapters will be very useful for
you:
http://www.vu.union.edu/~sif/Investment%20Banking.pdf
Search strategy:
"commercial bank" "what is"
"investment bank" "what is"
"commercial bank" "investment bank" difference
Search engine:
www.google.com
I hope this helps. If you need a clarification, please post a request
for it before rate this answer.
Regards.
livioflores-ga |
Request for Answer Clarification by
shoaib-ga
on
15 Jul 2003 11:46 PDT
Livioflores-ga researcher please note excellent answer has been
provided by you but I need a little more clarification of
your answer. You provided the following statement but please
provide a more clear answer for applying to the investment
bank for mortgage loan for purchase of residential resort
property for investment so that I shall be able to apply to
investment bank for that;
If a company needs capital, it may ask
an investment bank to sell equity or debt (stocks or bonds). Because
commercial banks already have funds available from their depositors
and an investment bank does not, an I-bank must spend considerable
time finding investors in order to obtain capital for its client."
Thanks for your help from shoaib-ga.
|
Request for Answer Clarification by
shoaib-ga
on
15 Jul 2003 11:55 PDT
livioflores-ga researcher please also note that previously you had
provided the website address of www.ikobo.com organization
in my previously posted question and please note that I want to
say that you had provided 'world-class' rated and outstanding
answer because ikobo.com organization is a world-class rated
organization providing excellent online money transaction
services and I shall soon give ***** rating to your answer
and also special thanks to you for that purpose. Best
regards, shoaib-ga.
|
Clarification of Answer by
livioflores-ga
on
16 Jul 2003 23:38 PDT
Hi shoaib!!
You are asking why "an I-bank must spend considerable time finding
investors in order to obtain capital for its client"?
The answer is because the investment bank need to contact investors
(and convince them to invest in the client project) to find capital
for its client. On the other hand, a commercial bank has funds
available (deposits) to offer for loans to its clients, and the bank
does not need to convince anybody, except for itself, to do this.
In regard of the mortgage loan for your business project, the best way
is to go to the bank and ask. It depends of the size of your needs you
will need a commercial bank or an invesment bank, I guess. The
investment banks are more appropiated for large investments (but I
donīt know where large investments start). If the investment bank is
the way that you will use for get funds for your project, it will
contact you with investors, this investors will evaluate your project
(with the bank) and then they will decide for the convenience to
invest on your project. A commercial bank will evaluate itself your
project and decide itself if it give you the loan.
I Hope that the following links help you to find what you need:
"Small Business Loans.com" :
http://smallbusinessloans.com/?trackid=2
"Investment Index":
http://www.investment-index.com/investment/
"CarltonOn-line.com":
http://www.carltongroup.com/
"Investment.com":
http://www.investment.com/financial_centre/main.asp
This is all that I can tell you about this topic, I hope that this let
you go ahead with your project.
Regards.
livioflores-ga
|
Request for Answer Clarification by
shoaib-ga
on
19 Jul 2003 07:01 PDT
Hello livioflores researcher and please note that excellent
answer has been provided by you. You said that "investment
bank will
contact you with investors and investors will evaluate your project
(with the bank) and then they will decide for the convenience to
invest on your project", I want to mention that investment banks
provide loans to the developed and emerging capital markets
of the world and please note that I need mortgage loan for
purchase of residential resort property located at the 'Playa
Del Carmen' resort area in the Mexico country and because
Mexico country is an emerging capital market of the world and
mortgage market for real estate in the Mexico country has
experienced "continious robust growth" so therefore it means
that investors who will be working with the investment bank
will be able to provide mortgage loan for my above
mentioned property project? I only need "confirmation" for my
above mentioned statement so that I shall be able to 'apply'
to the investment bank for above mentioned property project.
Thanks for your help in this regard from Shoaib.
|
Clarification of Answer by
livioflores-ga
on
19 Jul 2003 18:17 PDT
The only one that can confirm that for you is the bank, I only can
tell you that the kind of bank that you need depends on the amount of
money involved in the operation. If you are talking about millions of
dollars the Investment Bank is the only way for you (and these are the
operations bear in mind for the developed and emerging capital markets
of the world), if you are talking about thousends of dollars, both
possibilities are available, but the commercial bank will be more
appropiate for your needs.
Again the confirmation that you need can only come from the bank.
Regards.
livioflores-ga
|
Request for Answer Clarification by
shoaib-ga
on
02 Aug 2003 18:18 PDT
Hello livioflores researcher and thanks for your excellent answer
but I only need a little more clarification of your answer and
after that please note that I shall contact Merill Lynch
international investment bank or www.ml.com for above mentioned
purpose. I want to know that investment banks charge "any"
type of 'fees or money' from the borrower for the processing
of mortgage or real estate loans so as to 'complete' the
property transaction process? Thanks for your help from
Shoaib.
|
Request for Answer Clarification by
shoaib-ga
on
02 Aug 2003 18:37 PDT
Livioflores researcher after receiving your answer I shall give
***** rating to your answer. Regards, Shoaib.
|
Clarification of Answer by
livioflores-ga
on
03 Aug 2003 06:57 PDT
The answer to your question is yes, but I am unable to know how much
the fees are without contact the bank.
Please read the following:
"Fees and commissions
Fees and commissions primarily include fees from investment
management, custody and processing services, deposit accounts,
brokerage services, mortgage servicing, loan commitments, standby
letters of credit, compensating balances, insurance products and other
financial service-related products."
"JPMorganChase - auditedfinancial statements":
http://ar.jpmorganchase.com/ar2001/audited/n4.html
Also visit the following page:
"About Mortgage Closing Costs":
http://www.planetloan.com/library/mortgage_closing_costs.html
For a proper answer you must contact the bank and ask for the Mortgage
Closing Costs.
I hope this helps you.
Regards.
livioflores-ga
|
Request for Answer Clarification by
shoaib-ga
on
03 Aug 2003 18:36 PDT
Livioflores researcher please note that you have provided a little
wrong answer of my above mentioned question. please take a look
at my below mentioned website link and in this link leader-ga
researcher has provided to me the website addresses of
specialized and leading international investment banks of
U.S.A. and leader-ga researcher had told me that those
investment banks do not charge points and application fees
and those international investment banks can close the deal
or it can pay for the closing costs of the property in the
form of EQUITY INVESTMENT and thus those international
investment banks can "fulfill my loan requirements". So
please provide 'clarification' to my above mentioned statement.
Thanks for your help.
|
Request for Answer Clarification by
shoaib-ga
on
03 Aug 2003 18:37 PDT
Livioflores researcher please note that you have provided a little
wrong answer of my above mentioned question. please take a look
at my below mentioned website link and in this link leader-ga
researcher has provided to me the website addresses of
specialized and leading international investment banks of
U.S.A. and leader-ga researcher had told me that those
investment banks do not charge points and application fees
and those international investment banks can close the deal
or it can pay for the closing costs of the property in the
form of EQUITY INVESTMENT and thus those international
investment banks can "fulfill my loan requirements".
http://answers.google.com/answers/main?cmd=threadview&id=120758
So please provide 'clarification' to my above mentioned
statement. Thanks for your help.
|
Request for Answer Clarification by
shoaib-ga
on
03 Aug 2003 19:05 PDT
Livioflores researcher please also take a look at the
following website link in which Denco-ga researcher has
provided excellent definition of EQUITY INVESTMENT which is
used in "raising funds" for the project and equity investment
results in the percentage of ownership in the project.
http://answers.google.com/answers/main?cmd=threadview&id=219865
Please also provide 'clarification' of my above mentioned
statement of equity investment. Thanks for your help.
|
Request for Answer Clarification by
shoaib-ga
on
03 Aug 2003 19:59 PDT
Livioflores researcher please note that the information you have
provided above about Jbmorgan investment banking is also wrong,
please go to the following website of www.jbmorgan.com and
then click its investment bank link and also click its 'debt
and equity underwriting' link and you will find that this
website does not contains any information about the charging
of fees or money from the borrower but instead it is
written in it that Jbmorgan investment bank provides helps to
"fulfill the needs of the clients or borrowers" for
processing of real estate loans. Please provide 'clarification'
to my above mentioned statement. Thanks.
|
Request for Answer Clarification by
shoaib-ga
on
03 Aug 2003 20:05 PDT
Note; I had by mistake typed the wrong website address of
Jpmorgan investment bank.
Correct website address of Jpmorgan investment bank is:
www.jpmorgan.com
|
Clarification of Answer by
livioflores-ga
on
03 Aug 2003 20:31 PDT
Hi shoaib!!
The last info that i gave you comes from the jpmorgan website, not
from my knowledge, wich is actually exhausted at this point.
I cannot give more clarifications about this topic, because I am not
an specialist about it. I tried to help you in every request in spite
of each request was a different question than the original, wich you
value only for $2.
At this point my knowledge is not good enough to give more
clarifications without an extense research, so considering your
original question answered as you told me I suggest you to post a new
question about this, giving to another researcher the chance of answer
it.
Best Regards.
livioflores-ga
|
Request for Answer Clarification by
shoaib-ga
on
03 Aug 2003 20:52 PDT
Livioflores researcher I have read the statement posted by you
but please note that I shall pay additional US$ 3 to you in
the form of additional tip you and in this way total of US$
5 will be paid to you and I think US$ 5 would be
sufficient to provide answers to my above mentioned
clarification questions. Please provide clarification to that
statement. Thanks for your help from Shoaib-ga.
|
Clarification of Answer by
livioflores-ga
on
03 Aug 2003 22:13 PDT
Hi!!
Dear shoaib, it is not a question of money, I am unable to answer
properly the clarifications that you request.
the last thing that I can tell you is that in almost bank pages where
the bankīs products are promoted, the bad news are hiden, and they
talk about these points only when you contact them and ask directly
for them.
Please excuse me for cannot give you a better answer and accept my
suggestion of posting a new question, there are several researchers
having a good knowledge about this topic.
Sincerely
livioflores-ga
|
Request for Answer Clarification by
shoaib-ga
on
24 Mar 2004 14:33 PST
Livioflores researcher please take a little of your time and
provide to me a little more clarification of your answer.
Livioflores researcher you have indicated above that "if
the loan amount is large then borrower should contact
investment bank for real estate loan", so therefore in
response to your statement I want to know that what should
be the "minimum" real estate mortgage loan amount if a
borrower wants to 'apply' to the international investment
bank?? For example if I apply to the 'Credit Suisse
international investment bank' or www.csfb.com organization then
what would be the 'minimum' real estate mortgage loan
amount for the individual so that I should be able to apply
to Credit Suisse investment bank for real estate mortgage
loan for individual ?? Please
provide "clarification" to my statement and many thanks for
that from Shoaib.
|
Clarification of Answer by
livioflores-ga
on
30 Mar 2004 20:44 PST
Hi shoaib!!
The limit switch depends on the institution. The bank's policy
determines wich is this point. When you apply for a loan to a bank you
must ask for this point to them. Of course this minimum level depends
also of your profile, if your name is Bill Gates you will have a
better access to a loan than if you are Mr John Smith.
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