What is the difference between an investment bank and a bank holding company?

Investment banking: investment banking is the name of the United States, and in China it is called a company, which can only do business related to the company, such as: issuance, underwriting, trading, corporate restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses, but not bank-related business, such as taking deposits and issuing loans.

Bank Holding Company:

Becoming a bank holding company allows you to expand your business. Not only can you take deposits and issue loans, but you can also continue to do what the first company could do before.

Addendum: What is an investment bank.

There are four main international definitions of investment banking:

Type 1: Any financial institution that operates a Wall Street financial business can be called an investment bank.

Second, only financial institutions that operate some or all of the capital market business are investment banks.

The third type: financial institutions engaged in ** underwriting and mergers and acquisitions are called investment banks.

Fourth, financial institutions that only underwrite** and transact in the secondary market are called investment banks.

The key point is that the bank holding company is equivalent to obtaining the license of a traditional commercial bank, and it can absorb deposits. In this way, the two investment banks do not have to rely entirely on borrowing funds from the interbank market, which is equivalent to having new funds**.

The first floor is right, from an investment bank to a bank holding company, which is also part of the transition to a commercial bank, so that Morgan Stanley and Goldman Sachs can not only continue their unfinished transactions, but also request federal emergency bankruptcy protection at the last moment, which is not provided to investment banks, that is, they can make money while also having security.

Investment bank is the abbreviation of investment bank, which is actually a domestic investment company, but it is more focused on financial investment, and has the function of absorbing public funds like a bank, so it is called an investment bank. It is for the main purpose of making a profit, not for the purpose of controlling a certain enterprise or institution. Holding bank, in fact, does not refer to a type of bank, but refers to the controlling shareholder of a certain enterprise, which is a bank, so it is called a holding bank, which reflects the bank's foreign investment function, not the main business of the bank.

It's not very well expressed, I hope you can understand it!

Investment banks are non-bank financial institutions mainly engaged in issuance, underwriting, trading, corporate restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses, and are the main financial intermediaries in the capital market. In China, the main representatives of investment banks include China International Capital Corporation, CITIC, Investment Bank, etc.

**Company: refers to a limited liability company or shares established in accordance with the provisions of the "Company Law" and the "** Law" and established with the review and approval of the ***** supervision and administration authority to specialize in ** business and have the status of an independent legal person.

The term investment bank is "investment bank" in English, but "investment bank" has at least four meanings:

First, the institutional level refers to the financial enterprises that are directly financial institutions in the capital market.

Second, the industry level refers to the entire industry of investment banking.

Third, the business level refers to the business operated by the investment bank.

Fourth, the discipline level is about the theory and practice of investment banking (including "Learning", "Investment", etc.).

At present, there is confusion in the understanding of the term investment bank in the academic and practical circles in China, and to a large extent, these four levels are not clearly distinguished. In fact, the four meanings of this English phrase have corresponding Chinese words, which can be expressed in terms of investment banking, investment banking, investment banking and investment banking.

It belongs to the financial services industry, which is the mark that distinguishes it from the general consulting and intermediary services.

It mainly serves the capital market, which is the mark that distinguishes commercial banks.

It is an intellectually intensive industry, which is a hallmark that distinguishes it from other specialized financial services institutions.

Countries around the world have different divisions and names for ** companies, the United States is commonly known as investment banks, and the United Kingdom is called merchant banks. Some countries represented by Germany implement mixed banking and business operations, and banks usually set up companies to engage in business operations. Some countries, such as Japan, like China, refer to financial institutions that specialize in ** business as ** companies.

There are Bank of Communications, Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China Zhongda, China Post Group, China Development Bank, CITIC Group, Everbright Group, Ping An Group, and China Merchants Group.

Industrial Bank, Shanghai International Group, Great Wall Selling Shenzhu Asset Management, Cinda Asset Management, Huarong Asset Management, Oriental Asset Management, etc.

Venture capital firms: companies that specialize in risk** (or venture capital) and effectively invest the funds under their control into high-tech companies with profit potential, and obtain capital returns through the latter's listing or merger and acquisition. Venture capital firms are similar to investment firms, except that their clients are start-ups rather than large corporations.

Inexperienced young companies often need sound advice on running a business in addition to capital. Venture capital firms can provide this. Venture capitalists invest money in new ventures, helping the management team to grow the company to the point where it can be "listed", i.e., giving shares to the investing public.

Once this is achieved, the typical venture capital firm will sell its interest in the company and move on to the next venture. The scope of venture capital companies in the field of investment is relatively wide, although venture capital in China has not really appeared for a long time, but due to the development of China and the special market, venture capital in China has developed very rapidly in recent years, and a large aspect of this is that venture capital companies can see this embodiment. Investment Banking:

It is a type of financial institution corresponding to commercial banks, mainly engaged in non-bank financial institutions such as issuance, underwriting, trading, corporate restructuring, mergers and acquisitions, investment analysis, venture capital, project financing, etc., and is the main financial intermediary in the capital market. Investment banks are the name of the European continent, and in the United Kingdom they are called merchant banks, and in Japan they are referred to as ** companies.

2.There are four main organizational forms of investment banks: one is the type of professional investment bank, which has many institutions all over the world, and they have their own business directions, such as Gao Pai Yesheng and Morgan Stanley; The second is the investment bank owned by commercial banks, mainly commercial banks through mergers and acquisitions of other investment banks, equity participation or the establishment of subsidiaries to engage in investment banking business, this form is very typical in Britain and Germany and other countries, such as HSBC Group, UBS Group; The third is that universal banks directly engage in investment banking business, which mainly appears in Europe, and banks are engaged in commercial banking business while engaging in investment banking business, such as Deutsche Bank; Fourth, some financial companies set up by large multinational corporations.

In China, the main representatives of investment banks are: China International Capital Corporation****, CITIC**, etc. [To put it simply, investment banks are engaged in the listing of enterprises, and some large mergers and acquisitions projects.

The projects that Kazeji does are relatively small. Some integrated financial companies have both investment banking and venture capital businesses, but these two businesses are more separate than overlapping. A simple wind company cannot be an investment bank, because there is no access qualification certificate issued by the state.

It is rare for an investment bank to do a venture capital project, unless it is to make a better package for the company they underwrite and go public.