Answer:
I am aware of two definitions. The first, which is probably the original definition, is the provision of banking services to other banks. This might include foreign exchange and letter of credit services, check collection, loan participation and syndication, computer services, etc. It follows the general pattern of supplying a service that is likely to be re-packaged and provided to end users (the clients of the retail bank).
The second definition, which I have seen fairly often, uses "wholesale" banking to describe the services provided by larger banks to large business clients. In this context, the term is almost always used to describe a section of the bank devoted to serving larger clients, while the "retail banking" division of the same bank targets small business and consumer services.
First published on BankersOnline.com 4/4/05
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