Analysis Of The Feasibility Of The Commercial Banks Involved In Investment Banking

With the growth of China's economy, the financial market reform will result in a great demand for the investment banking business. At the same time, the competition is severer among the financial institutions. So the commercial banks must try to find more business and opportunity for profit making. And the investment bank business is the right one.This paper will focus on the reason why the commercial banks do the business of investment banks and how to do it, and try to find the ways to solve the problems that the commercial banks will face when they get involvement the business of investment banks. This paper will be good to those who is the staff of commercial banks and will be involved in this business.This paper is divided into six parts. The fist part tells the necessary that the commercial banks do the business of investment banks. The second part gives the basic theory concerned with the investment bank. And from the third part to the fifth part, this paper will analyze the development of the investment bank business based on the case study of China Construction Bank. The sixth part gives the results and advises the policy.According to the international successful experience, it's the best way for the commercial banks to set up the professional department to do the business of investment banks. With the development of the firms, the investment will be operated in the marketed ways and the project financing will have more channels. And the business of investment banks will meet this demand. But the success of this business has a great relationship with the level of risk-preventing for the commercial banks. So this paper will give the ways of risk-preventing accordingly.