The Research On The Synergy Effects Of Chinese Commercial Banks Operating Investment Banking Business

In the 1970 s,international commercial banks turned to integrated operations and vigorously carried out investment banking business,gradually creating a number of largescale investment banks,such as Citigroup and Goldman Sachs.The promulgation of the Financial Services Modernization Act in 1999 ended up separate operation,and the trend of integrated operations began to expand globally.After the outbreak of the financial crisis in 2008,professional investment banks such as Goldman Sachs and Morgan Stanley became the controlling shareholders of commercial banks and enjoyed the synergies brought by comprehensive operations by holding a number of subsidiaries and simultaneously operating financial services such as banking,securities and insurance.In addition,with the increasing looseness of restrictions on domestic separate supervision and the opening up of financial markets,to meet diverse needs of customers and to seek new growth points of profits,operating rapidly investment banking business and changing from single operation to integrated operation will be an inevitable choice for domestic commercial banks.This article is based on the above content,referring to domestic and foreign literatures,selecting novel research perspective of the synergy effects,using theoretical research,empirical research,comparative research and other research methods,and dividing domestic commercial banks into national commercial banks and regional commercial banks according to regional factors,and carry out detailed theoretical analysis and empirical analysis on the synergy effects of domestic commercial banks operating investment banking business.It not only can enrich the previous theoretical system of commercial banks and investment banks,but also give some practical theoretical guidance and policy advices for how to design relevant systems and business mechanisms for commercial banks to maximize the synergy effects and achieve sustainable value-added.Firstly,this paper reviews the domestic and foreign research literature on commercial banks operating investment banking business,and selects the synergy effects of commercial banks operating investment banking business as the research object.Secondly,it introduces the concepts of commercial banks,investment banks and synergy effects,and uses the theory of economies of scale,economies of scope and modern portfolio to conduct a detailed theoretical analysis of the synergy effects of commercial banks operating investment banking business.Thirdly,it carries out analysis of overall status and specific banking status about the synergy effects of domestic commercial banks operating investment banking business.Then,it carries out empirical analysis by designing variables and constructing models,and it is mainly divided into three steps: at first,selecting samples and data,and putting forward to the research hypotheses on the basis of the theoretical analysis and current situation analysis;afterwards,conducting descriptive statistics and correlation analysis of total sample and subsamples;and then,constructing a fixed utility model for multiple regression analysis of total sample and subsamples and testing the robustness of the regression results.The empirical results are as follows:(1)After conducting investment banking business,Chinese commercial banks can obtain benefits of economies of scale and scope through sharing resource and information,cross-selling,and business cooperation,then achieve significant synergy effects.(2)Compared with national commercial banks,regional commercial banks tend to have more synergy effects when operating investment banking business due to their moderate asset size and business scale,obvious regional synergies,and regional monopoly advantages.Finally,based on the research results and the actual situation in China,this paper gives some feasible suggestions for the domestic commercial banks operating investment banking business from the perspectives of promoting business synergy,keeping moderate comprehensive operation and constructing the advantages of large investment banks.