investment bank
What is an investment bank?
● An investment bank is a financial institution corresponding to a commercial bank. Non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses are the main financial intermediaries in the capital market.
● Investment bank is the title of the United States and continental Europe. It is called a commercial bank in Britain, and a securities company in China and Japan.
Organizational form of investment bank
● Independent professional investment bank
For example, CITIC Securities and CICC in China, Goldman Sachs and Morgan Stanley in the United States;
● Investment banks owned by commercial banks
Commercial banks engage in investment banking business through mergers and acquisitions of other investment banks, equity participation or establishment of subsidiaries, such as HSBC Group and UBS Group AG)； Group AG;
● Universal banks directly operate investment banking business.
Banks engage in commercial banking and investment banking;
● Multinational financial companies
Different from commercial banks
investment bank
project
Original business
Securities underwriting
function
General situation of operation
The main source of profit
Business policies and principles
Regulatory department
Risk characteristics
investment bank
Securities underwriting
Direct financing with emphasis on long-term financing.
Can not be reflected by assets and liabilities.
appoint
Pay more attention to development on the premise of controlling risks.
Mainly securities regulatory agencies.
Generally speaking, investors face greater risks, while investment banks face less risks.
commercial bank
Deposits and loans
Indirect financing, focusing on short-term financing.
On-balance sheet and off-balance sheet business
Deposit-loan spread
Pursue the combination of profitability, safety and liquidity, and adhere to the principle of stability.
central bank
Generally speaking, depositors face less risks, while commercial banks face greater risks.