What are the similarities and differences between investment banks and commercial banks?

Investment bank (corporate finance) is a kind of financial institution corresponding to commercial banks. It is a non-bank financial institution mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses, and is the main financial intermediary in the capital market.

There are four main organizational forms of investment banks:

1, an independent professional investment bank. There are many institutions of this type all over the world with their own business directions, such as Goldman Sachs and Morgan Stanley in the United States;

2. Investment banks owned by commercial banks are mainly commercial banks that acquire other investment banks through mergers and acquisitions, equity participation or the establishment of subsidiaries to engage in investment banking business. This form is very typical in Britain and Germany, such as HSBC Group and UBS Group AG AG;

3. Universal banks directly operate investment banking business, mainly in Europe. Banks are engaged in both commercial banking and investment banking, such as Deutsche Bank;

4. Financial companies established by some large multinational companies. In China, the main representatives of investment banks are: China International Capital Corporation, CITIC Securities, etc.