Private Bank

A private bank serves clients whose financial complexity exceeds what retail banking can accommodate. Services typically span deposit accounts and payments, credit facilities such as securities-based lending and mortgage lending, custody of investment assets, and access to investment management or advisory relationships. Some private banks are stand-alone institutions; others are divisions of large global banks that ring-fence their wealthy-client relationships from their mass-market operations.

For families at the $25 million level and above, private banking relationships can offer meaningful practical advantages: dedicated relationship managers, credit underwriting that considers the full picture of a family's balance sheet rather than just income, and access to products or services not available through retail channels. A hypothetical family that owns a closely held business might find that a private bank is better equipped to structure a loan against the business's value than a conventional lender.

A common confusion is conflating private banking with private wealth management. Private banking emphasizes the banking and lending relationship; wealth management emphasizes investment oversight and financial planning. Some institutions bundle these services; others keep them separate. Families sometimes consider whether a single institution providing both creates a conflict of interest, since the bank's lending revenue and the family's investment interests do not always align perfectly. A qualified advisor can help evaluate how a particular institution structures these relationships and what disclosures govern them.