Corporate banking provides financial services to large businesses. It is different from commercial banking, which serves individuals and small businesses. Corporate banking clients are corporations with complex needs: multinational operations, large capital expenditures, foreign exchange exposure, and sophisticated treasury management. The services include loans, lines of credit, trade finance, cash management, foreign exchange, and risk management.

Corporate banking is relationship-driven. A bank assigns a relationship manager to each client, and that manager coordinates a team of product specialists. The bank may provide a revolving credit facility to fund working capital, a term loan to finance an acquisition, and a hedging program to manage currency risk. It may also handle the client's payments, collections, and liquidity management. The relationship is often global, with the bank serving the client in multiple countries.

Corporate banking is competitive and lucrative. The largest corporate banks, like JPMorgan Chase, HSBC, and Citigroup, generate billions in revenue. They compete on price, speed, and expertise. They also compete on balance sheet capacity, because large clients need large commitments. A single loan can be hundreds of millions of dollars.

Corporate banking is not without risk. A corporate client can default, especially in a recession. A bank with too much exposure to one industry, like oil and gas, can suffer if that industry declines. Corporate banks manage these risks through diversification, collateral, and covenants.