An Analysis of the Choice Between Separated and Mixed Operation Model for Icbc( London)
An analysis of the choice between separated and mixed operation model for ICBC( London)
Abstract:
Since the fifth wave of Merge and Acquisition in the 1990s, the global banking industries have developed towards the direction of large-scale, international and omnipotent banks. The mixed operation of the commercial banks had already been the leading trend in the 21st century. With China’s entrance into WTO at the end of last century, the Chinese financial institutions, especially the Chinese bank industries, are destined to participate in the global economy and to face the keen competition from the "financial conglomerate" of the western developed countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned commercial banks should make an important decision on whether or not fully introduce the mixed operation for operating in UK. This study analyzes the difference of the operation model of HSBC and ICBC are operating in the UK at present, and examines the advantages and disadvantages of both separated and mixed operation for ICBC (London). Furthermore, it proposes the realistic choice of operation model for ICBC (London) under the existing Chinese financial system and the market condition of UK. This paper argues that the separated operation model of ICBC and investment banks in the short term will not change. The internally integrated operation model in terms of mixed operation which through restructuring to concurrently operate investment bank business within the ICBC (London), should be the realistic choice. The operating advantages in terms of low risk and high efficiency of the Group Banking form will be the development orientation for ICBC (London).
Chapter 1
1. Introduction
1.1 Background to the Research
November 4, 1999 the U.S. Senate and House passed the “Financial Services
Abstract:
Since the fifth wave of Merge and Acquisition in the 1990s, the global banking industries have developed towards the direction of large-scale, international and omnipotent banks. The mixed operation of the commercial banks had already been the leading trend in the 21st century. With China’s entrance into WTO at the end of last century, the Chinese financial institutions, especially the Chinese bank industries, are destined to participate in the global economy and to face the keen competition from the "financial conglomerate" of the western developed countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned commercial banks should make an important decision on whether or not fully introduce the mixed operation for operating in UK. This study analyzes the difference of the operation model of HSBC and ICBC are operating in the UK at present, and examines the advantages and disadvantages of both separated and mixed operation for ICBC (London). Furthermore, it proposes the realistic choice of operation model for ICBC (London) under the existing Chinese financial system and the market condition of UK. This paper argues that the separated operation model of ICBC and investment banks in the short term will not change. The internally integrated operation model in terms of mixed operation which through restructuring to concurrently operate investment bank business within the ICBC (London), should be the realistic choice. The operating advantages in terms of low risk and high efficiency of the Group Banking form will be the development orientation for ICBC (London).
Chapter 1
1. Introduction
1.1 Background to the Research
November 4, 1999 the U.S. Senate and House passed the “Financial Services
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