merchant bank

merchant bank definition - business

merchant bank

  1. An investment bank that commits its own funds by taking a creditor position or equity interest in another firm. For example, a merchant bank may provide temporary financing for a leveraged buyout.
  2. A bank that has entered into an agreement to accept merchant deposits originating from bankcard transactions.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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