Banque D'Affaires

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DEFINITION of 'Banque D'Affaires'

A type of French financial institution that resembles a merchant bank. Banques d'affaires typically specialize in providing financing for organizations and also advising corporations on the best course of action in certain financial matters.

BREAKING DOWN 'Banque D'Affaires'

Banques d'affaires may conduct structured-finance activities with their own resources. Interestingly, banques d'affaires do not tend to hold the assets for prolonged periods of time, because the assets tend to be sold off to investors for a subsequent profit. Therefore, the organization is exposed to the risk that the market may not be conducive to the offering.

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RELATED FAQS
  1. What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different ... Read Full Answer >>
  2. How does investment banking differ from commercial banking?

    Investment banking and commercial banking are two primary segments of the banking industry. Investment banks facilitate the ... Read Full Answer >>
  3. Why do commercial banks borrow from the Federal Reserve?

    Commercial banks borrow from the Federal Reserve primarily to meet reserve requirements when their cash on hand is low before ... Read Full Answer >>
  4. What role does a correspondent bank play in an international transaction?

    A correspondent bank is most typically used in international buy, sell or money transfer transactions to facilitate foreign ... Read Full Answer >>
  5. What is the difference between a correspondent bank and intermediary bank?

    Correspondent and intermediary banks serve as third-party banks that coordinate with beneficiary banks to facilitate international ... Read Full Answer >>
  6. What are the main benchmarks that track the banking sector?

    The appropriate benchmarks for tracking banking sector performance depend on the type of banking. For instance, commercial-only ... Read Full Answer >>

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