100%(5)5 out of 5 people found this document helpful
This preview shows page 1 - 3 out of 5 pages.
Similarities and Differences between Investment Banking and Commercial BankingSimilaritiesOne key element that makes both the investment and commercial banks similar is their investment on clients. Every client that comes to the table of these banks seeks to invest either in the banks or on other opportunities in the market. Despite the difference of the role of the investment made, they all seek to ensure their cash is in safe hands and have a good representation and backing of a legal financial advisor. Similarly, they both have the role of ensuring that a client is given all the support and backing to that relates to their investments either in the company of elsewhere. Any payments made through the bank are officiated in the presence of the client and the depositor. Each has to provide their credentials to ascertain the transaction with the bank as the intermediary.Both banks have the role of keeping track of the financial progress of their clients maintaining the significance of the processes and ensuring they comply with government regulations such as taxation. Both the investment and commercial banks maintain taxation and yearly transactions that their clients have in the company. These records prove that the operationsare genuine and their representation is at per with the government regulations to their activities. For corporations taking their activities to these banks, the banks have the mandate of conducting market research that shows the operations of the market and the pointers to the best approach anycan take. Risk management is among the many approaches that a company has to consider in discussing with their clients their operations and the necessary actions to consider in the acquisition of any asset or when initiating a savings account. Every activity of a company shouldbe taken up with the clients to ensure that they are aware of all their options before making a
solid decision. However, investment banks have an allowance of offering strategic decision to