This page contains a Flash digital edition of a book.
48 Financial Services


Corporate Banking managing the banking business of the kings of capitalism


Corporate banking, usually called commercial banking in the US, is the broad term applied to the various banking services offered to large and small to medium-sized (SME) companies. This may sound simple, but it’s definitely not.


the overview


Relationship managers need to be diplomatic, engaging and commercially-minded


Corporate banks offer a range of simple and complex services to large companies


Expect a lot of travel and interaction with customers’ businesses


For example, a single bank can arrange a loan for a company, which is relatively straightforward. On the other hand, banks could be involved in a more complicated syndicated loan, where several banks combine to provide the funds for a loan.


Corporate banking services also include cash management – collecting and managing a company’s cash to ensure its financial stability, managing changes in foreign exchange rates, or offering treasury solutions. They also provide similar services to those offered to members of the public – the issuance of cheques and bank drafts, or overdrafts, for example.


Corporate bankers target different industries, such as healthcare, public sector or retail, and therefore often carve out niche areas of expertise. Those servicing energy, mining or utilities companies, for instance, might be project finance experts, working out the business case for funding a new power plant or mine.


Roles and career paths 7/10 6/10 6/10 7/10


Junior corporate bankers often start out as credit analysts, assessing company balance sheets and deciding whether or not to issue loans. You may also accompany senior sales and relationship staff as they try to sell products to corporate customers. One banker describes this as “bag- carrying” – picking up tips without having much influence on the deal.


Before you specialise, the training process can be a long one: “In corporate banking our graduates typically sit with our coverage teams and gain exposure to a number of different businesses and dynamic environments across a series of different placements over two years,” says Christopher Jackson, head of emerging talent at Lloyds Banking Group.


In some institutions, such as Deutsche Bank, HSBC and J.P.Morgan, the corporate banking divisions have become more aligned with the investment bank. This allows the bankers to cross-sell their products to large clients.


Senior roles in corporate banking are more client-focused. There are business development


Marcelino Castrillo Head of SME,


Santander Corporate & Commercial


Bankers must be able to make a realistic assessment of a business’s needs so that they are not raising expectations and, more importantly, not shutting doors which should be opened.


key players


World’s biggest banks by assets 2012 ($bn) Company


1. Deutsche Bank 2. HSBC


3. BNP Paribas


4. Industrial and Commercial Bank of China


5. Mitsubishi UFJ Financial Group


6. Crédit Agricole 7. Barclays


8. Royal Bank of Scotland


9. J.P.Morgan Chase 10. Bank of America


Source: Global Finance


managers, who attempt to bring in new customers, or relationship managers, who look after existing clients. Both involve wining and dining chief executives and finance officers but are also quite technical.


There are also varying standards of relationship managers – those who simply respond to the ‘Request for Proposal’ (a company bidding to numerous banks for its funding needs); those who are first to receive client calls about potential opportunities; and ‘trusted advisers’ – bankers with deep client relationships.


Relationship managers have a support team, so when the company needs to raise finance, the relationship management team also provides transaction and structuring advice. If you’re not up for a client-facing role but still want to work in corporate banking, you have the option of working in risk/credit assessments or product, operations or treasury management.


Skills sought


You have to be personable to win business and maintain relationships in corporate banking, but you also have to be a ruthless number cruncher. After all, there’s no point in lending money to a client if they’re likely to fail to pay it back.


Country Total assets Germany UK


France China


Japan


France UK UK


US US


2,799 2,555 2,542 2,456


2,447


2,431 2,417 2,329


2,265 2,129


How hot? Money Kudos Opportunities


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66