Problems And Countermeasures Of Developing Investment Bank Business In ICBC Jilin Branch Business Department

At the times of increasing economical globalization and financial freelization, many commercial banks enter the field of investment bank in succession. Investment bank business, with the characteristics of high profit and low risk, exploits brand new revenue structure, and becomes the new favor for commercial banks to increase revenue, hold and develop customers.Chapter 1 mainly discusses the development status of investment bank business in commercial banks. Starting with basic theories, it defines Investment Bank as the financial institute taking the capital market business as the primary business. The main differences between investment bank business and commercial bank business exist in the aspects of business subject, financing system, business constitution, and operating guideline. Their development experiences the process of merged business– separate business– remerged business. It is found by research that the mixed business development of oversea commercial bank with investment bank shows the strong profitability. Also the development of investment bank business in domestic commercial bank is the necessary requirement of the development of domestic capital market, the competition of same business field and the strength enhance of commercial banks. Besides, the flexible state laws and supervise environment provide the external environment for investment bank business. Thus domestic commercial banks are integrating the investment bank business with the commercial bank business by the ways of market join, external business mix, holding company and so on. The Industrial and Commercial bank of China (ICBC) starts the investment bank business by establishing Investment Bank Department, and establishing joint venture subsidiary company. In the recent years, the revenue coming from the investment bank business increases in duplication. ICBC primarily builds its brand of investment bank, and continuously optimizes the construction. Chapter 2 discusses the status and existing problems of investment bank business in ICBC Jilin Branch Business Department, and analyzes the causes. Investment bank business of Business Department achieved the increase in triplication in 3 years and stands in the first position in Jilin province, but still has some problems on volume and development: simplex product, unbalanced construction, low technical level; laggard sales idea, neglected customers'long-term relationship, and lacking professional talents; confined customer range, the difference between the penetrability of investment bank business development and requirement of economical development and enterprise reorganization. The causes are: the systems of separate business operation, lag of regional economy, laggard sales idea, overlap of sale organization, sluggish training and so on.Aiming at the problems existing in Business Department, Chapter 3 makes SWOT analyses on external environment and its strength and weakness in order to seek for the countermeasures. It analyzes the economic society, legal supervise, same business competition environment in Changchun region where the Business Department located, and points out that the external conditions: like relatively laggard economic development, loose legal environment, coexist of competition and cooperation in same business, are not only the obstruction but also an opportunity. The weakness of Business Department is shown in the aspects of talent, system and idea, and the strength is shown in the aspects of brand, network, customer, information, capital and integrated service of ICBC. Generally the strength is more than the weakness, since the strength is physical and extrinsic, and the weakness is intellective and intrinsic.In Chapter 4, the essay summarizes and presents the countermeasures to the development of investment bank business in Jilin Branch business department.First part presents to clarify the market positions from various angles: to develop the large state-owned enterprises and accelerating products from the aspect of customer construction; to develop the rapidly growing area of investment bank from the aspect of ICBC internal system; to keep a foothold on the basic products and focus on famous products from the aspect of products of investment bank; strive for the best bank in the field of investment bank business from the aspect o f the competition of same business.Second part presents to deeply develop the management of customer relationship. The golden idea of clarifying customer relationship management is to systematically research customers through advanced software and optimized management method to identify, dig and cultivate the valuable customers, in order to improve the service lever to customers, strengthen the value, satisfaction, productiveness and loyalty of customers, as well as reduce sales cost, seek for new market and channel, and create more profits to enterprises. Firstly find out the customers'real requirement and background; then analyze the customers'historic value, current value, potential value; subdivide the customers; define the core customer, potential customer, short-line customer, and droppable customer; thus lock a small quantity of customers who can bring profit, and make particular management to customers by scientific means.Third part presents to adjust the structure of products based on long-time objective. With the objective of stock customer market, Business Department all-around initiates the basic investment bank business like financing consultation to adjust the construction of products.With the objective of new customers and new projects, Business Department initiates the large-scale and strong branded investment bank business, including reorganization and merge business, structural financing consultation business, bank syndicate arrangement and management business, indirect bank syndicate and asset transfer business, consultation business for enterprises who intend to launch into stock market and issue bonds etc., as well as positively cultivates the new businesses such as short-term financing securities and capital securitization.Part 4 presents to comprehensively employ the strategy of market sales, combine differencing strategy, specializing strategy, innovating strategy, relation strategy, famous brand strategy with price strategy, try to effectively accelerate the development process of innovation, specialization, and famous brand of investment bank in Jilin Branch Business Department.Part 5 presents some other particular measures: accelerate the mix-operation development of traditional commercial bank and investment bank business, perfect the operation system of investment bank, enhance the cooperation with the same business and agency institutes, establish the system of training and encouraging, as well as prevent and control risks. Investment bank business, for domestic commercial bank, is a new subject.Its development and handling process of specific operation are innovating all the time. Only with the attitude of studying and courage of overcoming difficulties, one and another new phases will come forth in succession.