Research On Investment Banking Of China's Commercial Banks

A long time, China has always been the "separate operation, sub-regulation" of financial institutions, commercial banks were restricted to the investment banking sector. In recent years, as the rise of the domestic capital market, especially after China's accession to the WTO, with the foreign banks full access to and exchange market-oriented interest rate reform , rely on the spread of domestic banks as the main source of income for the profit model is facing a serious challenge. The commercial bank through the resources conformity, simultaneously the run business mechanics of banking and the investment banking, realizes two between overlapping mix managements, adapts the environmental variation fully using the financial resources, achieves sharpens the bank innovation ability and the highly effective management goal, already became it to enhance the competitive power the choice inevitably. After 2001, with the management policy of restrictions on the operation mode of commercial banks to gradually loosen, allowing commercial banks to carry out part of the investment banking business one after another out of the policy, commercial banks can be allowed in the policy framework of the investment banking business. Domestic commercial bank has also been recognized the importance of investment banking business, has Active trading of the sale of bonds, marketing and hosting fund, short-term financing bill and has achieved some success. However, in the course of business there is extensive, formal, marginalization of the characteristics ,and has restricted the profit ability enhancement of a very large extent. This was mainly due to the operation mode is still in early stages of development, related legal system is imperfect, and a lack of comprehensive risk-control mechanisms and investment banking professionals. From the laws and regulations, business model, personnel training and supervision to improve, under control risk's premise speeding up the development of investment banking, to increase the proportion of investment banking, thereby enhancing the competitiveness of commercial banks to adapt to the trend of financial globalization. This article takes commercial bank's investment banking as the object of study, in profits from the developed country commercial bank practically experience's foundation, combined with China's status, analysis of potential problems, proposed that suits our country's suggestion, provide the management of domestic commercial banks for some reference to the decision-making.