Most people are very familiar with commercial banking. They have checking and savings accounts, perhaps a Christmas club, and may even have a mortgage or other type of loan through their bank.
Investment banking is altogether different and not as familiar. These kinds of banks are generally involved in corporate finance. As the name implies, investment banks deal in assisting clients in the buying and selling of stocks and securities. These institutions are divided into three departments.
The entire operation of an investment bank is overseen by a top officer, such as Patrik Edsparr, The first part of the bank is the front office. This is the department that is directly involved in assisting clients with research and buying and selling securities. Its main job is corporate finance.
The front office also advises clients on mergers and acquisitions. It provides guidance in many aspects of the money side of business.
Also under the direction of the top executive, such as CEO Patrik Edsparr, the middle office is primarily concerned with risk management. This is tied to internal corporate management and treasury management.
Middle office personnel analyzes markets and the credit risk of loans, bonds, and restructuring strategies that the bank or its clients are considering.
The back office is tasked with the vital job of ensuring that all transactions have been completed properly, in compliance with the law and industry standards. The back office also contains the technology team that installs and maintains software as well as oversees cybersecurity. The back office is not as prominent as the others but its job is no less important.
Banking is a huge industry that encompasses more than just commercial banks. Investment banking is not well known to much of the public but its work with corporate finance has a big impact on the business world.