Goldman Sachs, the Wall Street-listed investment banking giant, is creating an in-house private bank to serve wealthy customers around the world as it seeks to recalibrate its business, according to the Wall Street Journal.
The bank is designed to boost Goldman Sachs’ deposits, which is a relatively cheap source of funding and less vulnerable to movements in financial markets, such as short-term money market rates, the article said.
The bank was not available for comment at the time that this publication went to press.
The report said the new unit will also lend more directly to corporations, some of which already make investments and do business with Goldman Sachs. Bank executives have set a goal of $100 billion in loans, up from $12 billion at the end of March. The development, however, will not involve any retail branches, Lloyd Blankfein, chief executive, told the WSJ.