Essay Example on History of the Barclays Commercial Bank

Introduction

The origin of the Barclays commercial bank dates back to two goldsmiths, namely Thomas Gould and John Freame. In 1960, the two founders established their reputation as renowned goldsmith bankers in the street of Lombard, London ( Bari & Nur 10). As their business witnessed substantial growth, they began to finance the trading activities of the fellow Quakers, particularly in the upcoming colonies of the Carribien and America. Thus the first source of finance mainly depended on the profit or returns from the goldsmiths they lent money.

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Furthermore, the Barclays commercial bank family was highly linked to slavery, sharing mixed involvement as both opponents and proponents. Alexander Barclay and David were both involved in the slave trade in 1756. On the other hand, David Barclay of Yongsbury was a great campaigner against the practice of slavery. Therefore, it can be argued that some of the initial capital in the founding stages of the Barclays commercial bank were drawn from the trading of slaves.

In around 1776, the firm was branded "Barclay, Bevan, and Bening." However, this only lasted until 1785 when a new partner by the name John Tritton arrived. Consequently, the firm ended up acquiring a new name, "Barclay, Bevan, and Tritton." In 1896, the entrance of several banks from London and England saw the firm rebrand to Barclays, currently, in use. Today, Barclays commercial bank stands as on the significant British multinational financial services provider and investment bank. The headquarters of the commercial bank is located in London.

How the Barclays Commercial Bank Makes Money

The Barclays commercial bank has an elaborate blueprint of generating profits that are essential for its sustenance and growth. Besides being an investment bank, the Barclays commercial is subdivided into four primary businesses. The businesses include investment management, wealth management, corporate banking, and personal banking.

Barclay commercial bank's investment banking sector is made up of three main divisions the investment banking division, the asset management division, and the sales and trading division. The principal role of investment banking is to generate profit to the bank through the facilitation of fund allocation to the clients. In this case, the bank acts as a financial intermediary creating a vital link between the capital providers and the customers. In the process, the bank acquires profits through the set rates.

Moreover, the Barclays investment sector has facilitated financial advisory services as a means of generating income. The advisory services include commercial acquisition, IPOs of portfolio firms, and capital raising for collective funding. The platform has witnessed significant growth in the number of potential clients looking to acquire advisory services.

Nonetheless, the investment banking sector of the Barclays bank has perfected on generating income through the trading of public debt and equity securities ( Bari & Nur 55). The profits are made from clients' trading commissions and the capital appreciation obtained through selling on behalf of the bank's account. Apart from the traditional bonds and stocks, Barclays accepts the trade of valuable commodities like gold, crude oil, and silver.

Similarly, the corporate wing of the Barclays bank employs some strategies in generating income for the bank. For instance, the banking sector gives numerous banking solutions to various businesses at a stipulated fee. The solution expertise covers quite a large field to ensure diversity hence increased chances of income generation to the bank. The business and product segments entail real commercial estates, treasury management, mortgage services, finance of equipment, and management of assets.

The corporate division of the Barclays bank is also useful in handling the small loans. The loans are mostly offered to individuals or customers who wish to purchase specific properties or equipment of operation. However, they are unable due to financial constraints. The bank can generate profit through this practice since the clients often refund the borrowed money with a considerable amount of profit.

Nevertheless, the Barclays commercial bank has maintained its fair share of income generation through the offering of currency exchange services. Since the bank is widely spread all over the globe, it has gained a significant reputation and can trade virtually any currency around the word (Bari & Nur 70). Through the use of experts in the field of the global economy, the bank has mastered the art of taking on speculative risks while conducting the services of currency exchange to generate massive profits.

Lastly, the Barclays bank wealth management banking division helps the bank in realizing income. The wealth management sector of the bank integrates the specialized financial services and the financial planning services, which entails activities like planning of estates, advice on tax and legal issues, and personal banking services. The Barclays bank has continuously generated income from these services by offering them at specified rates.

Conclusion

In conclusion, the Barclays commercial bank is one of the most well established commercial banks with several branches around the globe. Moreover, the bank has well-spelled strategies of generating income and profits that is crucial in running of day to day operations. Some of the money-making moves adopted by the bank include offering currency exchange services, incorporating the corporate system of banking, and offering various wealth management services to its clients.

Works cited

Bari, Ab, and Nur Anis Syazwani. "Bank Specific and Macroeconomic Determinants of Profitability in Barclays Bank PLC, United Kingdom." (2018). http://dx.doi.org/10.2139/ssrn.3301072