An industrial bank is one in charge of offering services to companies and large corporations either by creating companies or by developing them.
The form of collaboration with these banks has been through participation in the shareholding of the companies with which they have interests, providing financing and obtaining benefits, so that on many occasions the industrial banks formed the parent company of a complex holding company. industrial in nature.
Industrial banking has generally been focused on all types of clients, from small companies to large corporations.
In recent years, most of the industrial banks were absorbed or their nature changed by commercial banks, which have known how to diversify their corporate purpose in order to be present in all sectors, and not specialize as in the past.
Industrial bank operations
Industrial banks have limited their functions to merely corporate or large-volume ones, since, contrary to commercial banks, they could not perform deposit, savings and other services common to traditional banking.
- Financing operations: In the long and medium term, they have opted for advisory and capital provision work, either through the granting of credits, loans and loans with other companies in order to raise resources and carry out activities.
- Guarantee management: Generally, large companies must have bank guarantees that guarantee certain transactions with third parties.
- Asset financing: Either to improve the conditions of fixed assets or investments, share packages or other companies are bought.
Evolution of the industrial bank
Industrial banks have been losing prominence to become one more part of commercial banking. Thus, today all banks have a section of banking for companies or corporate banking.
Also, existing corporate or industrial banks are highly segmented around investment banks.
Industrial banking developed during the 19th century in the heat of industrial revolutions, either by complementing the revitalization of industries in attractive sectors or by borrowing and saving from existing organizations that had financing needs.
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