Investment Banking Business And Its Impact On Commercial Bank Performance

In China's financial industry, long-term since executes is "decentralized management, supervised respectively" system of commercial Banks, to the investment banking development is restricted. However, after China's accession to the WTO, the domestic capital market, foreign Banks in China, and to promote the interest rate marketization and the commercial Banks in China, rely on deposit interest as their main source of income of profit model are facing serious challenges. Therefore commercial Banks want in the intense competition situation, enhance its competitiveness, must pass a resource integration, and management of commercial Banks and investment Banks, make full use of the existing financial resources and its powerful scale to adapt to the environment change, improve the management efficiency and innovation ability of Banks.Investment banking business and commercial bank is the traditional business, the corresponding except traditional banking business mainly refers to the outside, and capital market all securities, fund, bond, etc. Commercial Banks and investment banking business in commercial Banks will represent itself outside the banking and other financial business, i.e., the commercial Banks into mixed-business management. Commercial Banks in China have been some investment banking business includes the following aspects:the financial advisory and reorganization of m&a and project financing, the syndicated loan business, the asset management business, etc.Based on the domestic and overseas scholars on the basis of existing research results at home and abroad, the first commercial bank theoretically in investment banking is analyzed, which lists the commercial bank for investment banking business scope as the theory of economic theory, the investment portfolio theory and transaction cost theory, etc. Later, on the basis of theoretical analysis of further USES error correction model of China construction bank, investment banking business development, empirical studies conducted by a more thorough observation of investment banking on the performance of commercial Banks in China. This article USES the data for the first quarter of 2000 by 2010, the time series data in the second quarter, total assets and bank deposit than this two more representative of the commercial bank, the bank as dependent variable performance index expenses of bank capital, P2 price average price P1, bank non-interest income of bank operating income for the proportion of independent empirical research. Empirical results show that, the total asset yield ROA, deposit-loan ratio DL, bank non-interest income of total revenue than the average price of the bank, NIR everyday expenditure price data bank of unit root test showed ADF variable is a single whole that they exist between long-term cointegration relation between them, and mutual into granger causality in error correction model, the empirical research and study this several variables of the interaction between the concrete. Finally in empirical studies are put forward on the basis of the corresponding policy recommendations.This is divided into five parts, below is part of the content of each article introduced:Part1: the introduction. This paper mainly introduces the purpose and significance of research, this paper reviewed and the research methods and research content, pointed out the innovation.Part2:the development of commercial Banks of investment banking business theory analysis and development situation. This part of the main commercial Banks and investment Banks, introduces the concept and business scope, Commercial Banks in investment banking main theoretical basis, Domestic commercial Banks and investment banking business in the situation.Part 3:theoretical model is introduced and the model selection. This paper mainly introduces the theoretical model choice, error correction model, etc. Explain the concept and connotation and use scope, and explain why this model, the use of these models for below do empirical research foundation. Part 4:based on China construction bank in business investment of empirical research. This section is the core part of research papers. Firstly introduces the construction bank of China in investment banking, the status quo of the selection and data processing. And error correction model of data, and find an empirical study of investment banking business performance of the commercial Banks.Part 5:the empirical results summarization and policy recommendations. Through the introduction of this part of the empirical research on the part of the commercial Banks in China, according to the situation given investment banking business policy Suggestions, Chinese commercial Banks can better development investment banking, improve the performance of commercial bank consolidation.