Commercial Bank’s Investment Banking Business Innovation Research Of China

The investment banks are able to participate in capital market allocation with a flexible form, it’s important role and status in the capital market are more and more recognized, the commercial banks in the world are developing investment banking in different modes, financial innovation of foreign financial institutions is developing constantly, providing various products and building a integral service system. With the deepening of market-oriented interest rate reform and the decreasing of deposit and lending interest rate, the financial disintermediation phenomenon is going deepen, so China’s commercial banks rely only on the development of traditional credit business to the era of huge operating income will be gone forever, China’s commercial banks have developed a variety of investment banking with the Modification and relaxation of the financial laws and regulations. With the development of economic globalization and financial globalization, China’s financial sector has been fully open to the world, foreign investment banking are seizing China’s emerging capital market quickly, Chinese commercial banks investment banking business is facing tough challenges, Therefore, we need further innovation and development to consolidate and expand our investment banking market share constantly.After years of development, China’s commercial banks investment banking has made some achievements, product categories is increasing, the proportion of investment banking business in the commercial banks revenue has been increasing, the business model are diversifying gradually but there are also many deficiencies, such as product homogeneity is more obvious, the intense competition between domestic commercial banks in the capital markets, the proportion of investment banking revenue has a large gap contrast to the well-known foreign commercial banks, the development of the business model itself is not mature enough, Therefore, the investment banking business of commercial banks in China must innovate order to maintain the vitality of sustained and rapid development.Although the investment banking business innovation of commercial banks in China has advantages in capital, information, customer resources, reputation, network layout, integrated services, but also face a variety of factors inside and outside, the traditional purpose of commercial banks business philosophy is always sold products itself, but not the actual needs of the customers, inadequate application of new technologies, operational organization structure is irrational, human resource management mechanisms are inadequate, product marketing relative to a single, risk management mechanism is not perfect, which no doubt constraints with commercial banks and investment banking innovation from internal, in the "separate operation, separate supervision" system, the division of regulatory authority is fuzzy, the regulatory is inefficiency, the laws and regulations are inadequate, the development of capital market is imperfect, these factors restrict the investment banking business of innovation, however, these external constraints are difficult to change, therefore commercial banks should be based on the reality of the external environmental conditions, focusing on their own strengths to crack the various internal constraints faced in the process of innovation.Commercial banks investment banking business innovation must first change the the business philosophy of only sell product itself, should also deepen the value-oriented, customer-centric business philosophy to adapt to the new competitive environment; flatten and intensification the organizational structure in order to reduce management levels, to accelerate the speed of information transmission, improve the capability of rapid decision-making; carry out the innovation in some specific field of investment banking according to its own characteristics and resource endowments, form it’s own characteristics of business, their own core competitiveness, deepen existing varieties in order to change the homogenization of the product; innovative service models and marketing methods to meet customer needs, to build the brand with market competitiveness, and the establishment of a virtual investment bank in order to enhance the influence of commercial banks investment banking business; Carry out the innovation in some specific field of investment banking according to its own characteristics and resource endowments, form it’s own characteristics of business, their own core competitiveness, deepen existing varieties in order to change the homogenization of the product; innovative service models and marketing methods to meet customer needs, to build the brand with market competitiveness, and the establishment of a virtual investment bank in order to enhance the influence of commercial banks investment banking business, improve the human resource management mechanism in order to play the central role of people in innovation; In addition, given the risk commercial banks investment banking business, to make innovation the results could be implemented, also need to strengthen internal controls and external regulatory constraints, so the investment banking risk management mechanism can be improved and meet the requirements of commercial banks investment banking business innovation.