Banking and Capital Market

Our Global Banking and Capital Markets pratice combines industry Knowledge and experience with strategic insights to help our clients succeed.

Banking

Banking refers to the industry and activities related to accepting deposits, providing loans, and facilitating financial transactions. Banks play a vital role in the economy by acting as intermediaries between savers and borrowers, offering a range of financial services to individuals, businesses, and governments.

Capital Markets

Capital markets refer to the financial markets where long-term debt and equity instruments are bought and sold. These markets enable companies, governments, and other entities to raise capital for investment and growth.

Some key aspects of banking include:

Deposit Accounts: Banks offer various types of deposit accounts, such as savings accounts, checking accounts, and certificates of deposit (CDs). These accounts provide a safe place to store money and often offer interest on deposits.

Loans and Credit: Banks provide loans and credit facilities to individuals and businesses. Common types of loans include personal loans, mortgages, and business loans. Banks assess borrowers' creditworthiness and charge interest on the loans they provide.

Payment Services:Banks facilitate domestic and international payment transactions, such as wire transfers, automated clearing house (ACH) transfers, and issuing credit and debit cards. They also provide services like online banking and mobile banking for convenient access to accounts.

Investment Services:Many banks have investment divisions that offer services like brokerage accounts, investment advisory services, and wealth management. These services help customers invest in stocks, bonds, mutual funds, and other investment products.

Risk Management:Banks assess and manage various risks, including credit risk, market risk, operational risk, and liquidity risk. They employ risk management techniques to ensure the safety and stability of their operations.

Key components of capital markets include:

Stock Market:The stock market is where shares of publicly traded companies are bought and sold. It provides a platform for companies to raise capital by issuing stocks and allows investors to buy and sell those stocks.

Bond Market:The bond market is where debt securities, such as government bonds, corporate bonds, and municipal bonds, are bought and sold. Bonds represent loans made by investors to the issuers, who promise to repay the principal along with periodic interest payments.

Derivatives Market:The derivatives market involves the trading of financial instruments derived from underlying assets. Common derivatives include futures contracts, options, and swaps. These instruments are used for hedging, speculation, and risk management.

Commodities Market:The commodities market facilitates the trading of physical goods such as agricultural products, metals, energy, and other raw materials. Commodities can be traded through spot contracts or futures contracts.

Foreign Exchange Market:The foreign exchange (forex) market is where currencies are bought and sold. It enables participants to exchange one currency for another, facilitating international trade and investment.