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Corporate banking is the broad term given to different banking services that large companies, governments, or other big institutions need in order to function day to day.

Responsibilities range from the relatively simple business of issuing loans to more complex matters, such as helping minimize taxes paid by overseas subsidiaries, managing changes in foreign exchange rates, or working out the details of financing packages necessary for the construction of a new office, plant or other facility. If an organization is exporting overseas, corporate bankers might arrange a process of international payment or put together "trade finance" packages to ensure the firm is paid by foreign customers.

In many cases, there's an overlap between corporate banking and capital markets. Bankers working in capital markets help companies raise money by issuing equities or debt. Corporate bankers typically help clients raise money through loans. When necessary, corporate bankers will bring in the expertise of their capital markets colleagues.

Increasingly, corporate banking requires an understanding of complex financing methods like securitization, where a company sells bonds based on the money it will in earn in the future from assets such as rented shop space or a back catalogue of products.

This trend was given a boost with the repeal of the Glass-Steagall Act in 1999. Glass-Steagall was a Depression-era law that barred U.S. commercial banks from owning brokerages or being involved in the securities markets. With its repeal, the roles of investment bankers and corporate bankers began merging. In addition, the increasing globalization of the financial markets makes it imperative for large money-center banks to be able to offer a broad array of services to help their business clients raise needed capital.

Longer term, the big news in corporate banking is consolidation. In the past five years the sector has changed considerably as participants sought to become bigger, and thus better able to compete. The trend, which isn't confined to the U.S., has continued into 2008. This year has seen UK-based Royal Bank of Scotland integrate the operations of Dutch asset manager ABN Amro, acquired late in 2007 by a consortium RBS led.

The recent credit crunch, which started with sub-prime mortgage defaults, added a new twist when it forced a few hard-hit institutions to seek strategic partners as a matter of survival. The U.S. government even stepped in: The Federal Reserve backed a March 2008 deal in which JPMorgan Chase, one of the biggest U.S. commercial banks, planned to acquire the troubled Bear Stearns investment bank. Another crisis-driven combination, between Bank of America and faltering mortgage specialist Countrywide Financial, was agreed to in January 2008.

Roles and Career Paths

If you opt for a career in corporate banking, you may start out in any number of roles. For example, you may begin as a credit analyst, spending your time looking at companies' balance sheets and working out whether it's a good idea to issue loans to them.

From the credit analyst's role you could progress to being a relationship manager, responsible for lending money to a handful of the bank's customers. It's a job that requires an intimate understanding of each company's strategy, a strong appreciation for the risks of default, and sales skills.

If you aren't interested in the relationship management side of corporate banking, you could go into treasury management. Treasury managers help companies cope with their cash flow. They ensure that businesses have enough money to pay for whatever they need to buy, and help them deal with fluctuations in the value of foreign currency holdings. Corporate banking also offers a variety of operational positions, including technology and human resources roles.

Various banks offer training in corporate banking. They include Citigroup, Goldman Sachs, UBS and HSBC. While all banks will want candidates to possess a college degree, an MBA isn't required to get a foot in the door of many corporate banking divisions.

Skills and Qualities

- Analytical ability and statistical aptitude
- Strong communication skills
- Ability to grow and maintain client relationships
- Demonstrable drive