Trends and characteristics of contemporary international banking. Urgent, thank you

Investment banking is a flexible, fast-growing, dynamic and creative industry. The emergence of new functions, new products, new technologies, new markets and new forces and the interaction between them have made the business of investment banks undergo greater changes and breakthroughs than in other fields, and their activities have shown the characteristics of combining diversification and specialization, and their role and function in the financial resource allocation mechanism have even guided the trend and pattern of modern economic development in the world.

So what are the development trends of investment banks?

1. Diversification of investment banking business.

In addition to the traditional underwriting, proprietary and brokerage business, the business of modern investment banking involves corporate mergers and acquisitions, risk management, asset management, investment consulting and many other fields. For example, they participate in various types of corporate restructuring and acquisition activities, help private enterprises to be publicized, help public enterprises to privatize, help enterprises to acquire or first property, and help bankrupt enterprises to liquidate assets. Investment banks have also been at the forefront of developing derivative financial instruments, creating a range of new instruments that transform the interest characteristics and denomination currencies of fixed income**, change the cash flow of some assets or liabilities, hedge for complex forms of risk, synthesize new types of instruments** and change financing structures in many other ways.

In addition, the investment bank is involved in the management of pensions, mutual and venture capital, among others, and provides advisory services in many different areas.

2. Investment banks are developing in the direction of specialization.

Due to the influence of various factors in history and reality, while diversifying and intersecting their businesses, major investment banks have also made full use of their unique advantages to develop in the direction of specialization. For example, Morgan Danley and Goldman Sachs are good at underwriting**; Merrill Lynch specializes in organizing project financing, property transactions, and brokerage services for individual investors; Bear Stiens is primarily involved in investments; Salomon Brothers' main business is ** trading; First Boston specializes in organizing syndicate underwriting**, arranging private debt offerings and planning corporate mergers, and providing brokerage services to institutional investors.

3. How to quickly and effectively integrate and innovate the development of investment banks.

The first is regional integration, that is, cross-regional integration. The second is the integration of the value chain, that is, how to integrate the internal resources of the enterprise and the integration of internal and external resources of the enterprise. It's important to integrate different resources.

Venture capital should cooperate with ** companies. In the past, there were two factions of people who did ** and those who did venture capital, but now they are very similar, one is to focus on the front stage, and the other is to focus on the back stage. Venture capital is not only a matter of the Ministry of Science and Technology, but should be a combination of cross-part, cross-department and cross-industry.

4. The direction of the combination of venture capital and investment banking.

At present, the times are different, the global economic environment is unpredictable, and a large number of new entrepreneurs are needed to inject vitality into the market, so how to effectively integrate resources to serve the new practice will have a large market, so the venture capital + investment banking model is also the future development trend.

Answer: The following aspects should generally be considered in the formulation of the international business operation and management strategy of commercial banks:

1) Regional strategy. First of all, according to the strategy of the global layout of international business, distinguish the main positions, strategic flanks and satellite bases, and select and configure outlets, and then determine the order of business development according to the political records, economy, market, society, population, transportation and other conditions and characteristics of the countries and cities to which they belong.

2) Customer strategy. Customers are the decisive factor in the development of the bank's business, according to the size and nature of the population of the country and city, analyze the structure of different types of industries and different types of customers, establish customer files, so as to determine the main and secondary levels, as well as the development focus and posture procedures.

3) Business strategy. According to the monetary, financial, foreign exchange and fiscal policies of the country and city, the distribution of industrial institutions and enterprises, the types and reserves of resources, the level of technology, the investment environment, etc., determine the types of services to provide financial products, and decide the focus and order of development and promotion.

4) Competitive strategy. The strategy of business competition shall be determined in accordance with the relevant regulations of the host country and the city in which the bank is located, the management of foreign-funded banks and joint venture banks, the financial regulations and tax laws, the basic situation, operating characteristics, business relations, business scope and focus of the host country bank and the foreign bank, especially the inter-bank competition, market structure and its controlling power.

5) Development strategy. Increasing competition in the international banking sector has led many commercial banks to pay more attention to costs and to abandon unprofitable products, services or even branches. One of the strategies of commercial banks to deal with complex international markets is a network approach, such as Citibank, Bank of America, and Chase Manhattan Bank, the largest international banks in the United States, all of which have adopted a global network strategy.

This strategy requires banks to provide TNCs with a worldwide network of services.

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Regarding the current situation and shape of our country's multinational banking business, the future countermeasures are suggested as follows:1The current situation and situation of China's multinational banking business:

The internationalization business of China's banking industry, represented by the five large commercial banks, maintained a relatively stable development trend in 2020, but due to the impact of the epidemic, the profitability of overseas institutions declined, and the overall degree of internationalization declined. 2.Countermeasures and suggestions for the future: adhere to the responsibility of helping the new pattern of dual-cycle development, continuously optimize the international layout, increase investment in science and technology and talents, and enhance the refinement of cross-border financial services; Optimize the management and assessment mechanism of overseas institutions, and improve the operational efficiency of overseas institutions; In response to the adjustment of global regulatory policies, we will build a growth engine to ensure stable and positive operations; Carbon finance, inclusive finance, and pension finance may become important innovation points.

<> the current situation and shape of multinational banking in our country, and suggestions for future countermeasures.

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Jian Shanxiang's suggestions for the current situation and shape of our country's multinational banking business and future countermeasures are as follows:1The current situation and situation of China's multinational banking business:

In 2020, the international business of China's banking industry, represented by five large commercial banks, maintained a relatively stable development trend, but due to the impact of the epidemic, the profitability of overseas institutions declined, and the overall degree of internationalization declined. 2.Countermeasures and suggestions for the future: adhere to the responsibility of helping the new pattern of dual-cycle development, continuously optimize the international layout, increase investment in science and technology and talents, and enhance the refinement of cross-border financial services; Optimize the management and assessment mechanism of overseas institutions, and improve the operational efficiency of overseas institutions; In response to the adjustment of global regulatory policies, we will build a growth engine to ensure stable and positive operations; Carbon finance, inclusive finance, and pension finance may become important innovation points.

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According to the definition of the United Nations Center for Transnational Corporations, banks that have branches and subsidiaries in five or more countries must have a majority of shares in the United States before they are called transnational banks. <>