The Investment Banking Department is mainly responsible for organizing the completion of the annual business indicators of the investment banking business of the whole bank, organizing the direct operation of target customers, target markets and major projects, and promoting the overall marketing of investment banking business. The Investment Banking Department is also responsible for product innovation and promotion of investment banking business, mainly including securities underwriting, securities trading, mergers and acquisitions, fund management, project financing, venture capital, credit asset securitization, etc. The Investment Banking Department is also responsible for building and maintaining the investment banking business network and establishing and expanding cooperation with various financial institutions and intermediaries at home and abroad. The investment banking department will organize the risk control of investment banking business, including the management of investment banking projects and the establishment of an internal review mechanism for investment banking projects.
Investment banking departments are all financial elites, making accurate measurement and promotion for investment and financial management. Banks use the investment banking department to inject funds that some enterprises can't lend into enterprises in the form of equity investment, and then sign equity repurchase agreements with enterprises. When the enterprise is in good operating condition, the bank will sell the previous equity to the enterprise to earn income.
At present, the investment banking business of commercial banks mainly includes the following three types:
The first is the distribution business. For example, help enterprises to issue inter-bank bonds (such as short-term financing bills, medium-term notes and perpetual bonds, which can be traded between banks) and ABS- asset-backed securities, which are popular at present. Commercial banks have many outlets, a wide range of customers and strong underwriting ability, which form the basis of commercial banks' bond investment banking business and lay the absolute advantage of commercial banks in this field.
The second is financial consulting business. It mainly includes enterprise mergers and acquisitions, securities underwriting, project financing consultants, and collective financial consultants. Among them, the financial consulting business uses the bank's customer network, capital resources, information resources, human resources and so on. Provide customers with comprehensive consulting services in capital, risk, investment and financial management, corporate strategy and other aspects. In fact, financial consulting business is usually called customer resource contracting business.
The third is leveraged financing business. Commercial banks provide enterprises with credit and other funds to help them obtain the funds needed for listing, rights issue, merger and acquisition, shareholding system reform and other activities.
In a word, although each family may have different settings, in general, the investment banking department of a commercial bank is not directly in charge of funds, but the financial market department and the asset management department, which are essentially to solve the "financing problem" for customers; Its main business includes bond underwriting, M&A loans and structured financing. , including other financing matching businesses; In addition to issuing bonds, it is similar to brokerage investment banks, mainly in the interbank market, including underwriting of short-term financing bills.