Study On Risk Prevention Of Investment Banking Of Commercial Banks In China

Comprehensive operation is an important trend of the development of the world's financial industry,and commercial banks' investment banking is an important direction of the development of comprehensive operation.It is of great theoretical and practical significance to study the development of the investment banking business of Chinese commercial banks and its impact on the risk of commercial banks in order to promote the steady operation of the investment banking business of Chinese commercial banks.Combine the experience of developed countries and China's national conditions,this paper applies the method of combining qualitative and quantitative analysis,in-depth study of the commercial bank of China investment banking policy evolution,the development current situation and path selection,risk analysis and empirical study,and based on the commercial bank of China investment banking business development present situation,characteristics and risk performance,build a complete system of risk prevention,risk prevention countermeasures are put forward.This paper attempts to provide a systematic analysis framework for the development and risk prevention of the investment banking business of Chinese commercial banks.As a financial practice,the investment banking business of commercial banks has profound theoretical connotation.From the historical,legal and market perspectives,this paper makes a profound analysis of the connotation and relationship between commercial banks and investment banks.Different theoretical hypotheses are used to explain the investment banking business of commercial banks,and then the risk management theory and external supervision theory applicable to the risk prevention of the investment banking business of commercial banks are explored by focusing on the risk of the investment banking business of commercial banks.From the perspective of theory,the paper reconstructs the theory of the emergence,development and risk prevention of the investment banking business of commercial banks.By comparing and analyzing the background,characteristics,advantages and disadvantages and legislative paths of the development of investment banking business of the banks in developed countries,this paper briefly reviews the policy evolution and development course of the investment banking business of the commercial banks in China in the past 40 years,and summarizes the experience of the developed countries that can be used for reference for the future development of the investment banking business of the commercial banks in China.Comprehensive combed our country commercial bank investment banking business in the basic situation of business scope,organization form,and the development of representative commercial bank practice,the analysis shows that the investment banking business in Chinese commercial banks internal operation and external competition still faces many problems,in the industry development,the depth of the business,organization form,income structure,personnel quality,etc,the crux of the need to be addressed.Risk and its effective prevention is the core issue of the development of investment banking business in the banking industry.From the analysis of the commercial bank as an investment banking with general risk sources,this paper focus on three types of typical compliance risks of investment banking business performance,to explore the conflict of interest between commercial banks,investment banking,risk transfer and risk concentration and of the special risk of transmission path,thus makes the commercial bank the emphasis and difficulty in investment banking risk prevention.From the domestic and foreign related empirical literature,theoretical circle about whether the investment banking business for commercial banks to improve management efficiency,to effect the bank individual risk investment banking and financial system stability problem is uncertain,investment banking business from the perspective of empirical research on the influence of bank's risk is of great significance.Taking 19 commercial banks from 2009 to 2018 as the research object,this paper investigates the impact of investment banking on bank risks based on the volatility risk analysis theory,the correlation analysis framework of the portfolio principle and the panel data regression analysis method.The results show that there is no obvious cyclical trend in the income of investment banks,and the volatility is obviously higher than the net income of interest.The operation of investment banking business will aggravate the uncertainty of banking income,but because of the relatively small proportion of income,investment banking business is not the main factor causing the fluctuation of banking income in China.The performance of investment banking income and net interest income of most banks is positively correlated,and it is difficult for commercial banks to realize risk diversification by operating investment banking business.The regression results of the influence of investment banking on bank risk are relatively significant.With the increasing weight of investment banking income in the bank's income structure,the income degree of commercial banks' diversification increases and the bank's risk decreases.Based on the risk characteristics and empirical research conclusions of Chinese commercial banks' investment banking business,a complete risk prevention system combining comprehensive risk management system and macro-prudential supervision framework is constructed.The construction of this system has realized the commercial bank risk prevention and the unity of the strategic management and union,made clear that each type of path selection for the development of investment banking,commercial banks and designed by the corporate governance framework,internal control mechanism and risk management process to constitute a system of risk prevention and risk management implementation of the platform.On the basis of risk management within the bank organization,a macro-prudential regulatory framework is established to adapt to and supplement it.The design of this framework includes such basic elements as regulatory objectives and principles,market structure supervision and market behavior supervision.On the basis of constructing the risk prevention system,this paper discusses the weak links in the risk prevention of the investment banking business of China's commercial banks,the risks and hidden dangers of specific organizational forms,and the challenges brought by external supervision.And from the four aspects of strengthening the risk understanding of commercial banks' investment banking business,strengthening the bank organization's special risk prevention ability,improving the ability to resist the risk shock,and improving the effectiveness of the supervision of commercial banks' investment banking business,the countermeasures to solve these problems are proposed.