Banking Exam Question - What are the NRB Directives for Provision of Opening Merchant Banking as Subsidiary Company by 'A', 'B', & 'C' Class Financial Institution? Explain

Introduction - Merchant Banking

A merchant bank is a company that deals mostly in international finance, business loans for companies and underwriting. These banks are experts in international trade, which makes them specialists in dealing with multinational corporations.

A dealer bank is generally a bank managing in business advances and speculation. In present day British use it is the same as a speculation bank. Trader banks were the primary present day banks and developed from medieval shippers who exchanged products, especially material vendors. Truly, vendor banks' motivation was to encourage or potentially fund generation and exchange of wares, subsequently the name "trader". Barely any banks today limit their exercises to such a thin extension. 

In present day use, the term also has gone up against a more thin importance, and alludes to a money related organization giving funding to organizations as offer proprietorship rather than credits. A vendor bank likewise gives consultative on corporate issues to the organizations in which they contribute.