The Research Of Developing Investment Bank Business By Commercial Bank In China On The Basis Of Risk Management

As early as 2001,facing the trend of financial integration over the whole world, competent departments in China have directed the way to mixed operation for China's commercial banks with the pressures from foreign banks and financial groups. So far, all kinds of commercial banks in China have developed invest bank business more or less and explored the way of mixed operations actively. However, invest bank business is still a new area for Chinese commercial banks. The mixed operations need further development in business operations, organization charge, management system, risk management, human resource management and other areas which are still under the discussion. What's more important, the crisis and bankruptcy reorganization exposed in sub-loan crisis raising three questions.The first one is the future development of the investment bank.The other two questions are if commercial bank should develop investment bank business and how to develop investment bank business. Therefore, China's commercial banks have to think again if they should go on developing mixed business and how to achieve the change of the profit model.These are two unavoidable questions which have close relationships with the long-range developing strategy.In this article, firstly, we analyze the underlying forces for Chinese commercial banks to develop investment bank business. Secondly, this paper further discusses the inevitability and practicability of mixed operation with the analysis of the trend of modern banking business and the transform of native banking. Thirdly, this paper makes a relative in-depth analysis of the crisis arising in mixed operations with the application of both the theoretical analysis and empirical test. Lastly, this paper addresses the strategy of developing investment bank business by commercial bank in China on the basis of risk management.