Corporate banking, also known as
business banking, refers to the aspect of banking that deals with corporate
customers. The term was originally used in the U.S. to distinguish it from
investment banking, after the Glass-Steagall Act of 1933 separated the two
activities. While the Act was repealed in the 1990s, corporate banking and
investment banking services have been offered for many years under the same
umbrella by most banks in the U.S. and elsewhere. Corporate banking is a key
profit center for most banks; however, as the biggest originator of customer
loans, it is also the source of regular write-downs for loans that have soured.
The corporate banking segment of banks typically
serves a diverse range of clients, ranging from small to mid-sized local
businesses with a few millions in revenues to large conglomerates with billions
in sales and offices across the country.
