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Wholesale banking refers to banking services for merchant banks and other financial institutions.

Some retail banks offers similar services for the individuals and smaller businesses they serve. But wholesale bankers work on a much larger scale.

They offer currency conversion and working capital, and they facilitate large transactions for banks and corporations. They can consult on investments and provide underwriting services, as well.

A typical customer of a wholesale bank might be a large grocery chain operating many stores throughout a region. The chain could need checking accounts for each site, as well as a large line of credit and credit card services. A wholesale bank is best able to meet the chain’s needs.

Many wholesale banks offer their customers discounts for bundling services. It’s also easier for businesses that buy and sell properties and assets to keep their financial information in one place.

One disadvantage to wholesale banking is the risk of keeping large amounts of cash in one bank.

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