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Research On Chinese Commercial Bank Concurrently Camping The Investment Services

Posted on:2006-05-17Degree:DoctorType:Dissertation
Country:ChinaCandidate:Z RenFull Text:PDF
GTID:1116360155468491Subject:Forestry Economics and Management
Abstract/Summary:PDF Full Text Request
Compared with commercial bank, investment bank represents a different concept. The traditional services of commercial banks are mainly in charge of deposit and loan services while the investment banking services are in charge of the rest of the commercial services which is relate to capital market such as stock, fund and bond etc. Commercial banks manage investment banking service services, which show that they start to extend their services into other financial field. This is a good signal of mix industry management. At present, since our country always exerts the financial system of 'minute industry management, the divide industry management', our commercial banks have limitation in developing the services in the field of investment bank. After 2001, with the development of financial policies, there are many policies have been settled which allow commercial banks to develop their services into some part of investment bank. Those commercial banking services are overlapping fusion into the investment banking service with the implementation of government policies. Seriously speaking, it is not formal form of the minute industry management pattern; it is not the developed countries' pattern as well. It belongs to the transitional stage from the 'minute industry management' pattern to 'mix industry management' pattern which is called 'concurrently industry management' pattern. Currently, our commercial banks have the good external environment of offering investment banking service and reality foundation. This topic systematically analyzes the development of our investment banking service by our commercial banks under the concurrently industry management pattern.This topic is very important for our commercial banks at financial reform and transition economy stage. From analyzing our current financial situation, commercial banks are allowed to develop investment banking services under certain policies which can build up a positive interaction between money market and capital market, diversify risk caused by the unbalanced investment pattern, meet all the needs of financial service under diversified market and increase the competitive ability of commercial banks. It has very important realistic meaning. Moreover, the investment banking service to the commercial banks is at the first stage since it has characteristics of extensive management, formalization and edge tendency. Because of in complete theoretical evidences and illustrations, managing investment banking service to the commercial banks is still an ongoing discussion, which defers the development of this services. In order to maintain this theoretical discrepancy, this topic will carry on systematically research on development of investment banking service to our commercial banks under concurrently industry pattern theoretically. After using the modern economics to analyze the foundation of developing investment banking services to commercial banks, economic strengths and negative impacts, we found that the appearance of this trend is to meet the need of market requirements. This is the market process through changing the behavior between demand and supply. Also it is a double-edge sword since concurrently camping two services isnot only appears the scale effects and the coordination effect, but also increases the risk caused by internal benefit conflict. Through using the theoretical model built by the modern investment combination theory to analyze the synthesis effect, we recommended that the risk of development the investment banking services to the commercial banks properly is less than only having commercial services only, which brings strong theoretical support.Since a suitable model is required for managing the investment banking service to our commercial banks, this topic focuses on the analysis on case studies and realistic evidences. Also by compared two management pattern, I considered that present big bank group's service model is still lack of realistic foundation therefore the realistic choice is the internal comprehensive management pattern. Under concurrently management stage with the service marketing situation, the commercial banks should exert the rule of 'limited overlapping and fusion under minute industry management pattern'. Business property management service will play a major role in the concurrently management to investment banking services lately. On the settings of organizational foundation, we can choose three organizational types which are 'customer actuation type', 'service actuation type' and 'customer and service overlapping' depending on different requirements and development stages. For the external supervising model, the supervision efficiency should be maximized by combining functional supervising. The realistic choice is to build up a model of 'major in organizational supervising, minor in functional supervising' which is the only effective way is to maintain our current 'supervising and managing joint conference system'. Based on the research of investment banking service design and serve operation, this topic clearly illustrates the realistic foundation, operation mechanism and operation flow of those services and it also offers powerful theoretical foundation for the development of the investment banking services to commercial banks.From reaching the sustainable development, the mode of 'mix industry management, gather industry supervising and managing' will be our financial future development orientation. Through analyzing the whole development process, our commercial banking services will experience the procedures of 'strict minute industry management-limited services overlapping and infusion-mix industry management' while the service mode of our commercial banks will experience a process of 'decentralized management-internal synthesis management-bank group management'. At the same time, the supervising mode of our commercial banks will experience a process of 'minute industry supervising- supervising overlapping under minute industry- gather industry supervising and managing'.Commercial banks concurrently camp investment banking service is the essential trend for our finance industry future development but it requires a long run and complicated development. It should be based on perfect political system. That is why the key for stimulating the development of the investment banking services to commercial banks is to build up a health and related law and regulation system. This includes such as legislation organization, supervising and managing level and all fields of commercial banks. Through many effort from all these fields, a better external and internal environment for development of the investment banking services to commercial banks will becreated.
Keywords/Search Tags:commercial bank, concurrently industry management, investment banking service
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