Research On The Development Of Investment Banking Business Of China’s Commercial Banks

Mankind has entered a new economic era in21st century. The extent and intensity offinancial innovation is far more than before. Commercial banking sector of China has been inthe forefront of world competition, and easily affected by the world’s financial innovationafter join WTO. Commercial banks are forced to conduct business innovation and open upnew markets by the increasingly fierce competition in the interbank along with the opening upof the domestic financial sector, continually reduction of the indirect financing proportionwith the rapid development of the capital markets and the decline of the margin along withmarket-oriented reform of interest rates.The mechanism of segregated operation and augmented supervision to financial systemhas been carried out since the middle of the1990s. However, integrated operation would bean inevitable choice under the situation of new economics and finance. And commercialbanks can increase revenue strongly, improve their competitiveness through the developmentof the investment banking business. Due to the great differences between commercial bankingbusiness and investment banking business, commercial banks should make adequatepreparations before developing the investment banking business. Otherwise commercialbanks would face huge risk. The history of commercial banks of our country conductinvestment banking business is not long. And compared with their foreign counterparts,whether in the mode selection of the commercial banks, the level of management, personneldevelopment or product innovation, commercial banks of our country are all at a disadvantage.When carrying out investment banking business, commercial banks of our country shouldlearn advanced management experience from their foreign counterparts and consider its owncharacteristics.The topic of this paper is the development of the investment banking business of thecommercial banks of our country. We can see the theoretical research of domestic and abroadin the paper first and then we make a completely compare between commercial bankingbusiness and investment banking business. And then we show the situation that thedevelopment of the investment banking business of commercial banks at domestic and abroad.Disadvantages and disadvantages, opportunities and challenges are shown in the SWOTanalysis. And the SWOT analysis is for investment banking business that commercial banksof China conduct. Strategic choice and tactic guidance were offered finally.