A merchant bank is a financial institution that primarily provides services to businesses rather than individual consumers. These banks specialize in activities like underwriting, loan syndication, and facilitating mergers and acquisitions. They help companies raise capital by issuing stocks or bonds and offer advisory services for complex financial transactions. Unlike traditional banks, which focus on deposits and personal loans, merchant banks cater to the needs of corporations and large enterprises. They often work with investment firms and private equity groups to support business growth and expansion. Their expertise in financial markets makes them valuable partners for companies seeking to navigate complex financial landscapes.