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The Structure of Investment Banking

The banking industry has multiple types of banks that provide banking services. Each type of bank is generally structured to provide services to a specific client type. The traditional local bank has a general structure. The structure allows the local bank to offer a variety of services that help people with common banking needs such as opening a checking or savings account.

However, this banking structure is not the best structure for clients who desire or need banking services that are more specific in nature. As an example, corporations tend to seek the assistance of banks for more specific banking services. The type of banking services needed by corporations is usually different than the services offered by local banks. Corporations usually are involved in financial transactions that are complex and require large sums of money. Many local banks are not structured to handle banking needs of this nature in the most efficient manner.

On the other hand, investment banks are structured to handle corporate financial transactions. The structure of investment banks contains three areas. All three areas provide services that are used on a regular basis in the corporate world.

A key element in the structure of investment banks is the ability to handle the large and complex financial transactions that corporations need to complete. The investment banking structure has several positions that are responsible for managing corporate financial transactions. One of these positions is the investment banker. The investment banker plays a vital role in ensuring that corporate financial transactions are handled in an efficient and timely manner.

In the investment banking world, Martin Lustgarten has become very popular. He is the founder of the company Lustgarten Martin. The company is an investment banking firm. Along with being the founder, he is also the CEO. Martin Lustgarten manages the daily business operations for his investment banking firm.

Martin Lustgarten provides a wide array of investment banking services that includes assistance with mergers, transactions, and acquisitions. In addition to being a business leader, Lustgarten is also a dedicated philanthropist.

Igor Cornelsen’s Opinion On Brazilian Banking

A look at Brazilian privately owned banks; one realizes that these banks are doing quite well despite the current disturbing situation of the Brazilian economy. According to the World Bank, the country registered an average economic growth of less than 2% last year. That performance was better than in 2014 when the economy did not register any growth. Where the economy performs dismally as the Brazilian economy, banks are expected to suffer. How do Brazilian banks survive under these conditions? Brazilian banking expert Igor Cornelsen offers some suggestions why privately owned Brazilian banks are not bearing the brunt of economic slump down in Brazil.

Reduction of costs

Igor Cornelsen opines that for banks to thrive in business, they must as far as possible reduce the risk of losses. Brazilian banks, especially the privately owned ones, have been very keen to give credit to customers who are credit-worthy. Since most of the low credit rated customers are denied credit by private banks, they turn to public banks which incur a lot of costs to realize the sums lent. The risk of loss, by these public banks, could be avoided if they took notice of the fact that the borrowers are not likely to settle their loans. Avoiding such bad debtors can do them a lot of good.

The ten major players of the Brazilian banking industry

There are ten major banks that are supporting the gigantic Brazilian economy which is reported to be the largest in South America and eighth largest in the world. These privately owned banks according to have tremendously helped the Brazilian economy to stand on its feet. Igor Cornelsen singles out one of the ten banks, Banco Itau, for its contribution in the growth of the Brazilian economy as one of the fastest growing banks in the country. Other commercial banks include Banco J Safra, Banrisul, HSBC, Santander, Banco do Brasil among others.

Paying attention to China

Igor Cornelsen notes on disqus that for economies to remain strong, they must abandon the old-school trend of looking to Western countries for trade. He acknowledges that China has established herself as a strong economy and a great trading partner for Brazil. A second reason why he says that China should be a major consideration for Brazil is given by the fact that not only do Brazil and China have very close trade ties but also Brazil’s biggest export competitor.

New face in the industry

According to the Brazilian investor, the appointment of Joaquim Levy as the Minister for Finance assures Brazilian banks some hope.

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