What does institutional banking primarily involve?

Institutional banking primarily involves offering financial services to large organizations. This type of banking is focused on serving entities such as corporations, governments, and other large institutions rather than individual consumers. These services can include commercial lending, treasury services, underwriting, and advisory services for mergers and acquisitions. The complexity and scale of the transactions typical in institutional banking require specialized knowledge and resources, distinguishing it from retail banking, which caters to individual customers.

In contrast, the other options reflect aspects of traditional retail banking or other types of financial services that do not match the primary function of institutional banking. Providing services to individual customers pertains to retail banking, while managing personal investment accounts is focused on wealth management for individuals. Holding cash reserves is more a function of liquidity management and does not capture the broader scope of services provided in institutional banking.