Studies On Theories And Policies For Domestic Commercial Banks To Develop Investment Banking

Nov., 1999 witnessed the passage of American "Financial service modernization bill", which put an end to the separate operation mode working for more than sixty years. Thus, China becomes the unique country that is still sticking with separate operation mode all over the worldwide finance circles. In recent twenty years, the investment banking, which is practiced by the commercial banks in western developed countries, has gradually appeared to be internationalized, diversified, specialized, and intensified in the trend of economic globalization and ever-increasingly rat-race market competition. With China's WTO entrance, which happened in Dec, 11^th, 2001, China was required to open up her finance according to a preset schedule. That is, by 2006, when the five-year interim is over and China's banking is open up in an all-round way, foreign financial institutes, which are crossing-operation-oriented, will penetrate into China's financial field here and there, and domestic commercial banks will have to face harsh challenge posed by international omnipotent banks and top-notch investment banks, thus constituting outside pressure on domestic commercial banks that are stepping up their efforts to develop investment banking.The author conducts a deep research on the theories and policies, abiding by which the domestic commercial banks practice investment banking, by dividing the dissertation into six sections.In the first section, the author makes clear the definitions of commercial bank and investment band, introduces the economic function and fundamental operationsof investment banks, and analyzes the differences and correlations between commercial bank and investment bank.In the second section, the author focuses on analyzing the theoretical bedrock of separate operation and crossing operation, and in addition, compares all the modes taken by the crossing-operation-practicing banks.In the third section, the author depicts the status quo of the development and reforming of domestic commercial banks, and the international background in which domestic commercial banks develop investment banking.In the forth section, the author makes a discuss over the necessity and advantage of domestic commercial banks if they are to develop investment banking, and sets forth the relation between attempting investment banking and improving the competitiveness of our commercial banks.In the fifth section, the author points out the key impediments and unaddressed problems standing in the way that our domestic commercial banks initiate investment banking, and besides, raises corresponding governmental solutions as well as steps that can be taken by commercial banks.In the sixth section, the author dwells on the emphasis our domestic commercial banks should put on and the staged strategy they should take when they develop investment banking.In the last place, the author makes a summary of the whole dissertation.