Research on the Current Situation and Countermeasures of Investment Banking of Chinese Commercial Banks

DOI: 10.4236/ojbm.2019.71022   PDF   HTML   XML   667 Downloads   1,044 Views   Citations

Abstract

With the continuous improvement and innovation of the business model of commercial banks, investment banking plays an increasingly important role in the business system of commercial banks in recent years. Compared with the western developed capitalist countries, the investment banking of Chinese commercial banks developed rapidly with strong vitality, though started late. However, with the continuous development of Chinese capital market and the changes in the economic environment at home and abroad in recent years, all kinds of problems still emerged though the investment banking of Chinese commercial banks is in a stage of sound development. The text analyses the problems of investment banking of Chinese commercial banks and gives corresponding suggestions by comparing the development and current situation of investment banking at home and abroad and combining the Chinese social-economic environment in recent years.

Share and Cite:

Zhang, P. (2019) Research on the Current Situation and Countermeasures of Investment Banking of Chinese Commercial Banks. Open Journal of Business and Management, 7, 330-338. doi: 10.4236/ojbm.2019.71022.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] Barth, J.R., Caprio Jr., G. and Levine, R. (2001) Bank Regulation and Supervision: What Works Best? Journal of Financial Intermediation, 13, 205-248.
https://doi.org/10.1016/j.jfi.2003.06.002
[2] White, E.N. (1986) Before the Glass-Steagall Act: An Analysis of the Investment Banking Activities of National Banks. Explorations in the Economy History, 23, 33-55.
https://doi.org/10.1016/0014-4983(86)90018-5
[3] Henry, D. (2013) JP Morgan Investment Bank Chairman Leaves for Hedge Fund. Wall Street& Technology-Online, Reuters, 8 January 2013.
[4] Balogun, J., Jacobs, C., Jarzabkowski, P., et al. (2015) Investment Banking: Linkages to the Real Economy and the Financial System. Bank of England Quarterly Bulletin, 55.
[5] Moshirian, F. (2003) Globalization and Financial Market Integration. Journal of Multinational Financial Management, 13, 289-302.
https://doi.org/10.1016/S1042-444X(03)00012-4
[6] Fields, P., Fraser, D. and Bhargava, R. (2003) A Comparison of Underwriting Costs of Initial Public Offerings by Investment and Commercial Banks. Journal of Financial Research, 26, 517-534.
https://doi.org/10.1111/1475-6803.00072
[7] Radic, N., Girardone, C. and Fiordelisi, F. (2010) Efficiency and Environmental Factors in Investment Banking. In: New Issues in Financial Institutions Management, Palgrave Macmillan, London, 106-121.
[8] Morrison, A.D. (2008) Investment Banking: Institutions, Politics, and Law. Oxford University Press.
[9] Laux, C. and Walz, U. (2009) Cross-Selling Lending and Underwriting: Scope Economies and Incentives. Review of Finance, 13, 341-367.
https://doi.org/10.1093/rof/rfn027
[10] Banerji, S. and Basu, P. (2010) Universal Banking and Equity Risk Premium. Social Science Electronic Publishing, Rochester, NY.
[11] Vennet, R.V. (2002) Cost and Profit Efficiency of Financial Conglomerates and Universal Banks in Europe. Journal of Money, Credit & Banking, 34, 254-282.
https://doi.org/10.1353/mcb.2002.0036
[12] Degl’Innocenti, M., Fiordelisi, F., Girardone, C. and Radic, N. (2018) Competition and Risk-Taking in Investment Banking. (Unpublished)
http://repository.essex.ac.uk/21268/
[13] Liu, T. (2005) A Multi-Objective Approach to Integrated Risk Management. 3rd International Conference on Evolutionary Multi-Criterion Optimization, EMO 2005, Guanajuato, 9-11 March 2005, 692-706.
[14] Zheng, J.G. (2003) Investment Banking and Securities Issuance. Handbook of the Economics of Finance, Elsevier B.V., Vol. 1, 255-306.
[15] Chen, K. (2009) The Dark Side of Universal Banking: Financial Conglomerates and the Origins of the Subprime Financial Crisis. Connecticut Law Review, 41.
[16] Brewer, E., Fortier, D. and Pavel, C. (2008) Bank Risk from Nonbank Activities. Economic Perspectives, 12, 14-26.
[17] Jia, L.I., Zhou, R., School, B., et al. (2017) International Experience and Enlightenment of Investment Banking Supervision. Research of Finance & Education.
[18] Rajan, R.G. and Zingales, L. (1995) What Do We Know about Capital Structure? Some Evidence from International Data. The journal of Finance, 50, 1421-1460.
[19] Williams, M.T. (2010) Uncontrolled Risk: The Lessons of Lehman Brothers and How Systemic Risk Can Still Bring down the World Financial System. McGraw-Hill Education, Pennsylvania.
[20] Harwood, I.A. (2006) Confidentiality Constraints within Mergers and Acquisitions: Gaining Insights through a “Bubble” Metaphor. British Journal of Management, 17, 347-359.
https://doi.org/10.1111/j.1467-8551.2005.00440.x
[21] Rosenbaum, J. and Joshua, P. (2009) Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions. John Wiley & Sons, Hoboken.
https://doi.org/10.1002/9781118267943
[22] Scott-Quinn, B. (1995) Investment Banking: Theory and Practice. Euromoney Books.

  
comments powered by Disqus

Copyright © 2020 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.