What Are the Different Types of Boutique Investment Banks?

Investment Banks are a type of financial institution corresponding to commercial banks. Non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, corporate restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses. They are the main financial intermediaries in the capital market. Investment banks are the titles of the United States and Continental Europe. The United Kingdom refers to them as merchant banks. In China and Japan, it refers to securities companies. There are four main types of organizational forms for investment banks: one is an independent professional investment bank. There are many types of institutions all over the world. They have their own special business directions, such as China CITIC Securities and CICC. Goldman Sachs and Morgan Stanley in the United States; Second, investment banks owned by commercial banks, mainly commercial banks through mergers and acquisitions of other investment banks, shares or establishment of subsidiaries to engage in investment banking business, this form is very typical in countries such as Britain and Germany, For example, the HSBC Group and UBS Group. The third is that all-round banks directly operate investment banking. This form mainly occurs in Europe. Banks are also engaged in commercial banking while engaged in investment banking. Investment banks mainly have investment businesses. Fourth, multinational financial companies.

investment bank

(A class of financial institutions corresponding to commercial banks)

Investment Banks are a type of counterpart to commercial banks
The term investment bank is "investment bank" in English, but "investment bank" contains at least four levels of meaning: first, the institutional level refers to financial enterprises that are direct financial institutions in the capital market; The whole line
Investment banks are the main service providers in financial markets.
Investment banking means traditional
History of Mixed and Split Industries
The advantages of the mixed industry are relatively high efficiency, the disadvantages are conflicts of interest and
Issuance and underwriting of stocks and bonds (primary market), trading brokers after completion of issuance (secondary market), corporate restructuring, mergers and acquisitions
There are four main types of investment banks in the world:
After 100 years of development, modern investment banks have broken through
The underwriting functions of underwriters can generally be divided into four categories:
1. Acquisition function: the risk underwriting function means that the underwriter first purchases the securities to be sold by the securities issuing company at a certain price.
The underwriter will bear the risk loss when the securities cannot be successfully resold:
Waiting for risk
Price risk
Placement risk.
2. Distribution function: refers to the investment bank selling the securities issued by the enterprise to the investing public, but does not bear the risk of incomplete sales or improper selling prices.
3. Consultant function: Provide the operation technology and relevant information of the capital market, provide reference for the issue company to raise funds, and provide a comparison of various financing methods.
4. Protection function: maintain the stability of the market price of securities and stabilize confidence.
Separate business model: The investment banking business is separated from the commercial banking business and is operated independently by the two institutions.
Mixed business model: Investment banking and commercial banking are integrated and penetrated, and both are provided by mixed banks.
Generally speaking, the organizational structure adopted by an investment bank is closely related to its internal organizational methods and business ideas. There are three main forms of organizational structure of modern investment banks.
Investment banks in the modern sense originated in Europe and the United States, and were mainly sold by many in the eighteenth and nineteenth centuries.
In the past two decades, the investment banking industry has been among the internationalization, diversification, specialization, and centralization of financial services, and has strived to open up various market spaces. These changes have continuously changed the investment banking and investment banking industry, have had a profound impact on the world economy and financial system, and have formed a clear and strong development trend.
project
investment bank
commercial Bank
Source business
China's investment banking business has grown from meeting the needs of securities issuance and trading. From China's practice, investment banking was initially completed by commercial banks. Commercial banks are not only the main issuers of financial instruments, but also the financial institutions that manage the largest amount of financial assets. In the mid-to-late 1980s, as China opened up
Societe Generale Bank
Paris France Finance Co., Ltd.
ABN AMRO Asia Limited
Bozi Financial Consulting Co., Ltd.
The Anglo Chinese Financial Consultants Limited
Asia Finance Limited
Billy Securities (Hong Kong) Limited
Bear Stearns Asia Limited
Canada Excelsior Capital Limited
BOC International Asia Limited ("BOC")
Fashion Capital Limited
Lyon Securities Capital Markets Limited
Jinghuashanyi Enterprise Finance Co., Ltd.
Qunyi Asia Limited
Although investment banks and traditional commercial banks bear the word "bank" in their names, in fact there are obvious differences between investment banks and traditional commercial banks:
From the perspective of market positioning, banks are the core of the money market, and investment banks are the core of the capital market;
From the perspective of service functions, commercial banks serve indirect financing, while investment banks serve direct financing;
From the perspective of business content, the business focus of commercial banks is to absorb deposits and issue loans, while investment banks neither absorb various deposits nor issue loans to enterprises. The business focus is on securities underwriting, corporate mergers and acquisitions and asset reorganizations;
From the perspective of income sources, the income of commercial banks is mainly derived from the spread of deposits and loans, while the income of investment banks is mainly derived from fees or commissions in securities underwriting, corporate mergers and acquisitions and asset restructuring.

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