Research On The Development Of Investment Banking Business Of Bank Of Communications

As the competition in the financial market becomes more and more fierce,commercial banks gradually leave the comfort zone of relying on the margin of deposit and loan,and actively transform to participate in the market competition to achieve growth based on stabilizing the existing earnings.For Bank of Communications,the decline trend of traditional business cannot be reversed,and the rise of investment bank business is inevitable.Therefore,how to develop the investment banking business,occupy their own market share,make up for the decline of traditional businesses,and ensure the steady growth of profits,have become the focus of various banks in recent years.Commercial banks have their own unique advantages in developing investment banking services,such as capital,institutional networks,and customer resources.However,there are still many shortcomings.There are many experiences in the development of investment banking in domestic commercial banks,and there are also many shortcomings.For the time-honored Bank of Communications,the investment banking business has been fruitful in recent years,continuously expanding the product system,establishing a widely recognized brand image,and making a great contribution to the growth of the bank's profits.In view of the advantages of Bank of Communications,which have been comprehensively introduced in numerous papers and reports,this paper will focus on analyzing the factors restricting the further development of Bank of Communications based on my work experience in the company.It is found that the investment banking line of Bank of Communications has some problems to be improved in product structure,business consciousness,business process and talent team construction.The income from investment banking business continued to increase,and the contribution to overall income gradually increased.However,compared with other commercial banks,the development of investment banking business was relatively lagging behind,and the income of investment banking business declined.In view of the existing problems,this paper first analyzes the internal and external deep reasons,such as the relatively backward operation mode,the insufficient distribution capacity,the imperfect incentive system,and the restrictions of financial and laws regulations.Then this paper analyzes the experience of several banks with good performance represented by Industrial bank and China Merchants Bank in recent years.Subsequently,relevant suggestions are proposed for the above problems in the later part of this paper.In this regard,Bank of Communications should be bold in innovation,break the constraints of traditional business operation mode,institution setting,talents and incentive mechanism,and establish an institutional framework suitable for the development of investment banking business.In addition,it is suggested that Bank of Communications establish an efficient risk control system with certain risk tolerance,design and promote innovative financial products and services that meet customer needs within the scope of risk control.The author hopes that the analysis and suggestions presented in this paper can provide some references for the development of Bank of Communications itself and other similar banks.Meanwhile,the author hopes to make a small contribution to the empirical research of Bank of Communications and the theoretical research of domestic investment banking in the future.