Discussion On The Development Of Investment Banking Model Of Small And Medium-Sized Joint-stock Commercial Banks

Recent years, with a further acceleration of the reform of China’s financial industry and the gradual opening up of the financial market, especially the capital market, China’s commercial banks, especially small and medium-sized joint-stock commercial banks are faced with unprecedented changes in market structure, competitive landscape, and business environment. In the face of capital constraints, interest rate liberalization, financing structural imbalances, financial disintermediation, as well as the strong impact and severe challenges to foreign mixed operations, small and medium-sized joint-stock commercial banks are no longer able to fundamentally reverse the industrial degradation trends of the financial industry just through improved service mode and enhanced service level. At this point, it is necessary for small and medium-sized joint-stock commercial banks to be active in investment banking, to expand to a broader capital market, and to make business innovation improve their overall competitiveness and profitability. Therefore, the study of the investment banking business of small and medium-sized joint-stock commercial bank in China to explore an effective mode suitable for small and medium-sized joint-stock commercial banks to carry out investment banking has a very important significance to the development of China’s small and medium-sized joint-stock commercial banks.This article starts from the practical significance for small and medium-sized joint-stock commercial banks in China to carry out investment banking business, quotes relevant literature and public data, and adopts theoretical research and comparative analysis methods; first summarizes the investment banking business of China’s commercial banks from the necessity and theoretical basis of commercial banks to carry out investment banking business and the development history, introduces the current situation of the investment banking business of China’s commercial banks, especially large commercial banks, which focuses on the status quo of laws and regulations, business models, development situation, and major investment banking products of large commercial banks, and carries out analysis of the status of the investment banking business of small and medium-sized joint-stock commercial banks in China, including the overall situation, their current major business types and models, and innovation modes of small and medium-sized joint-stock commercial banks in China. By comparing the condition of the investment banking business among large commercial banks, the author explores the development trend of China’s small and medium-sized joint-stock commercial banks in investment banking, analyzes the future marketing strategy, business strategy, target mode, process management, and brand management of the investment banking business of small and medium-sized joint-stock commercial banks, analyzes the risk control and regulatory measures for small and medium-sized joint-stock commercial banks to carry out investment banking business from investment banking risk classification, internal risk control, and external risk supervision, finds out the deficiencies, and provides suggestions in the five aspects of development strategy, investment banking products, incentive mechanism, cooperation, and risk management.