Are Corporate and Retail Banking the Same?

Corporate banking is a category of corporate banking services that include a variety of banking services available only to companies. The resources include credit provision, cash management, etc.

As a premium bank account, corporate banking offers Priority banking features to its users. 

Corporate Banking Features

Corporation Customers

A banking subsidiary of a bank normally represents SMEs and major corporations


Only after the consent of the company’s board of directors will corporate banking accounts be opened. It says, by an official vote or a company decision, they must be authorized. The accountant of the corporation normally opens business accounts.


Since corporations are treated as independent legal bodies under the constitution, both the business and not individual board members’ contents of corporate accounts are the property of the company. 

This ensures the company accounts are very independent. It also states that the board of directors’ immediate creditors do not have a right to the substance of a company’s corporate account.

Credit Rating

The management or operation of the business account is part of the company’s credit background. It influences the company’s appraisal and equity values, the interest rates on the company’s loans, etc.


Business banking needs a degree of industry experience. So business banking is well paid for.

Corporate Banking Services


Corporate consumers are given loans and associated credit options. The major share of income for commercial banks is credit facilities. In view of the possibility of lending to corporate borrowers, loan interest rates are significantly high.


Financial services are used by businesses to manage their needs of working capital. For international corporations such facilities are particularly critical in facilitating currency exchange.

Fixed Asset Requirement Financing

Corporations in capital intensive industries such as shipping, information technology and heavy machinery, such as fixed capital requirement financing services are significant. Banks provide for custom loans and leases to buy vehicles, machinery, etc.

Employer Services

Business banks provide retirement benefits, healthcare plans and salary facilities to employers as well, for example.

Retail Banking V. Corporate Banking

Retail banking offers the public financial services. This side of the market, also known as business or personal finance, encourages people to handle their money by giving them access to basic banking, credit and financial advisory services.

In this respect, the programs include checks and savings balances, checking and savings accounts, personal loans, mortgages, credit cards and financing for commercial vehicles. The profit generated by commercial banks is generated by investment of consumer deposits into a broad variety of companies, although the profit margin is less than for company banks, as individual deposits are mostly significantly lower than company deposits.

The main difference between commercial and multinational banks is the customer. Small, medium, and big companies that are called institutions rather than entities occupy the world of corporate finance. Commercial banking on the other hand is mostly concerned with persons although, depending upon the circumstances, smaller companies are also involved with retail banking.

The capital involved in industrial and commercial banking is another difference. The vast amount of loans given to some major companies in the UAE. Corporate bankers are dealing with large amounts of capital. Commercial lending works on the ordinary borrower and as such, in contrast to corporate banking, the volume of capital loaned, saved and spent is lower.

James Mason

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