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Finance

Finance

According to Investorpedia, retail banks are banks devoted to provide services to particular savers and investors and small and medium sized enterprises. On the other hand, wholesale banks specialize in the provision of services in large operations, generally with large companies and organizations.

Although financial institutions today specialize in a certain type of activity, this has not always been the case. In fact, it was not until after the crash of 1929 that these two types of banking began to operate separately.

This took place in 1933 through the Glass-Steagal Law, which was promoted by Roosevelt as part of a package to stimulate the economy (The New Deal). This law was abolished by Bill Clinton in 1999, which allowed both models of banking to be housed under the same institution once again. However, after the financial crisis that devastated banks in 2008, these activities currently operate separately in most cases.

The main difference between both banking sectors is that they each specialize in different types of customers, but this is not the only difference, Let’s take a look at other things that distinguish them.

Once again BBVA Bancomer has been named best investment bank in Mexico by Latin Finance magazine. The bank already merited the distinction in 2013 and this year, despite market volatility, BBVA Bancomer has managed to set itself apart from its competitors, earning the award for a second time. This accolade attests to the effort and work of BBVA’s investment banking unit in the country over the past year, and reaffirms the importance of Mexico within the Group.