A Study Of Commercial Banks Of China In Developing Investment Banking Business

This article makes efforts to study and discuss the reasons and ways of commercial banks in developing investment banking business from a front angle of view, in order to find a suitable approach of business expansion for today and tomorrow.As the major medium of financial market, commercial banks are doing the transference from deposit to investment depending on their proper advantages in marketing and information collection. The traditional banking of commercial banks is sustained by operation of deposit and loan, which yields the profits from the margin of rates for the banks. Since 1980's, the predominance of commercial banks has been declining, which is shown, on the one hand, by the gradual adaptation of enterprises to shift from indirect financing to direct financing with endless emerging facilities and measures of floatation of loan in the market, which brings low cost and high efficiency to them; on the other hand, the developed financing market has provided many investment tools for the widely existing medium and diminutive investment. Extensive innovation of finance results in great distributaries of deposit and increasing independence of banking medium. Worldwide changes of financing, pursuit of profits and enhanced risk control are making the bound between commercial banking and investment banking fairly obscure, and the mixed operation of financing has become the main trend. The domestic banks are desired to enter the investment domain for business expansion and predominance in future competition, taking advantage of their economy of scale and economy of scope, and their synergistic effects.This article, on this background, beginning with the expatiation of indispensability of commercial banks developing investment banking business, after reviewing and analyzing the expansion space in current financial environment, advantages and disadvantages of the mixed operation, brings forward the author's advice and tentative design of operation, discusses the business focus, developing mode, risk control and so on.