Wholesale Operations

Wholesale operations

IFB’s wholesale services, the CPMI standards and the prevention of fraud

Wholesale and retail banking

Banks serve two very different markets. Wholesale banking provides services to large clients, including other banks and government agencies: high-value transactions such as treasury management, commercial real estate finance and syndicated loans, designed around the complex needs of large entities. Retail banking serves individual consumers and smaller businesses with current and savings accounts, personal loans, mortgages and credit cards, offered to the mass market.

IFB holds its wholesale operations to the highest standards of operational quality, regulatory compliance and fraud prevention, and aligns them with the guidance of the Committee on Payments and Market Infrastructures (CPMI) at the Bank for International Settlements.

The CPMI standards

IFB’s wholesale operations are designed to meet the CPMI’s global standards for payment, clearing and settlement systems. Those standards serve financial stability by promoting safe and efficient processes. Following them gives our wholesale services operational resilience, transparency and security, with attention to efficiency, risk management, governance and innovation, and protection against evolving cyber threats.

Fraud prevention

Financial crime grows more sophisticated every year, and high-value transactions are its most attractive target. Our defence rests on four elements:

Real-time monitoring. Advanced systems watch transactions as they happen and stop potential fraud before it reaches our clients.
Secure transaction protocols. Strict authentication and authorisation ensure that only legitimate transactions are processed.
Client education. We share best practice on fraud prevention and on the importance of secure communication channels.
Cooperation. We work with supervisors and take part in industry initiatives against financial crime, so that our practice reflects the latest standards and insight.

IFB’s wholesale services

Within the CPMI framework, IFB offers a broad range of wholesale services, from payments settled through correspondent banks in RTGS systems and securities settlement to cross-border transactions and digital currency, each protected by our fraud prevention measures.

In short

Wholesale and retail banking play distinct but complementary roles. Our wholesale operations, guided by the CPMI’s standards, reflect a firm commitment to regulatory compliance, operational quality and the prevention of fraud. By combining innovation with security, we manage our clients’ assets with integrity and expertise, in a banking environment that is secure, transparent and efficient.

Wholesale banking operations

Wholesale banking covers the financial services that banks provide to large entities: corporations, government agencies, other financial institutions and high-net-worth individuals. These services are more complex and more individual than retail banking, which serves consumers.

Key aspects of wholesale banking

1. Clients

Corporations. Multinationals, regional firms and SMEs that need sophisticated financial products and services.
Government agencies. National, regional and local governments that need funding, investment management and other services.
Financial institutions. Banks, insurers, investment firms and asset managers that need interbank lending, custody and transaction processing.
High-net-worth individuals. Wealthy individuals seeking investment management, estate planning and bespoke solutions.

2. Services

Corporate finance. Advice and capital for mergers and acquisitions, restructurings and other major corporate transactions.
Commercial lending. Loans, credit lines and syndicated loans for working capital, expansion and other needs.
Treasury and cash management. Managing liquidity, optimising cash flow and handling day-to-day financial operations.
Trade finance. Letters of credit, trade credit insurance and export finance for international trade.
Investment banking. Underwriting and distributing new securities, and advice on capital raising and strategy.
Foreign exchange and derivatives. Currency exchange and hedging of interest rate, currency and commodity risk.
Custody. Safekeeping of financial assets, settlement and record-keeping for institutional investors.
Securities services. Clearing, settlement and custody for institutional clients trading securities.

3. Organisation

Relationship management. Dedicated teams who understand each client’s needs and design suitable solutions.
Product specialists. Experts in particular products who work with relationship managers.
Risk management. Sound frameworks for credit, market, operational and compliance risk.
Technology. Advanced systems for transaction processing, data management and client communication.

4. Regulatory compliance

Regulation. Compliance with the applicable national and international requirements, for example Basel III, and, where counterparties are in scope, MiFID II or the Dodd-Frank Act.
AML and CTF. Rigorous policies to detect and prevent illicit financial activity.

Why wholesale banking matters

Economic growth. Capital and essential financial services for large organisations support economic development.
Liquidity and efficiency. Sophisticated instruments make markets more liquid and operations more efficient.
Global trade. Trade finance reduces the risks of cross-border transactions.
Risk management. Hedging, derivatives and advice help clients manage financial risk.

Wholesale banking is integral to the functioning of the global financial system. It supports growth, makes markets more efficient and enables international trade.