2. Guarantee business is different: securities companies may not provide financing or guarantee for their shareholders or their affiliates, while investment banks can provide financing and do related guarantee business. Investment banks can operate securities asset management business together with bank-side securities business.
3. Different cores: From the perspective of market positioning, banks are the core of the money market and investment banks are the core of the capital market.
4. Different service functions: commercial banks provide indirect financing and investment banks provide direct financing.
5. Different sources of income: the income of commercial banks mainly comes from deposit and loan spreads, while the income of investment banks mainly comes from fees or commissions in securities underwriting, corporate mergers and acquisitions, and asset restructuring.
Extended data:
The Historical Development of Investment Banking in China;
China's investment banking business is constantly developing to meet the needs of securities issuance and trading. From the practice of our country, the investment banking business was originally completed by commercial banks, which are not only the main issuers of financial instruments, but also the financial institutions with the most financial assets.
In the middle and late 1980s, with the opening of China's securities circulation market, the securities business of the original commercial banks was gradually separated, and a large number of securities companies were established in various regions, forming a securities market intermediary system dominated by securities companies. In the following ten years, brokers gradually became the main body of investment banking in China.
In addition to professional securities companies, there are a large number of trust and investment companies, financial investment companies, property rights trading and brokerage institutions, asset management companies, financial consulting companies, etc., engaged in other business of investment banks.
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