1. Novel

  2. I Became the Youngest Daughter of a Chaebol Family

  3. Chapter 24: Daehwa Securities (2)
I Became the Youngest Daughter of a Chaebol Family

Chapter 24: Daehwa Securities (2)

An Investment Bank (IB) is different from a typical commercial bank.

To understand what an investment bank is, we first need to dig into the concept of a bank itself.

So, what exactly is a bank?

According to the Banking Act of the Republic of Korea, a bank is defined as follows:

  • “Banking business” refers to the act of taking deposits or issuing securities or other debt instruments to raise funds by assuming liabilities from an unspecified number of people, and using those funds for lending as a business.

  • “Bank” refers to any legal entity that regularly and systematically engages in banking business, excluding the Bank of Korea.

    ...Hmm. That’s not very clear.

    Let’s put it in simpler terms.

    A bank is a corporation that borrows and lends money.

    Now it’s starting to make a bit more sense. And naturally, the kind of bank that comes to mind is the one most people are familiar with—a commercial bank.

    It gathers deposits from people who have excess funds and lends them out to those who need money, at a higher interest rate than the one it offers on deposits.

    That’s the basic business model of a bank as most people understand it.

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