Question

Describe the finance function of an investment banking in a global context. Discuss how it affects the choice of capital structure as well as problems/challenges facing investment banks when accessing capital internationally.

Answer 1

Investment banks deals mainly with the aspects of capital financing for different levels of customers in local and global businesses.Investment banks serves corporations, institutions and governments by providing mergers and acquisition services and underwriting facilities.
Investment banks assumed the role of an intermediaries between corporations and investors.The banks also provides services like sales and trading, equity research and asset managemen.

Investment banks are facing serious problems in channalizing international capital. The regulatory changes after the global recession put limit on the performance. The tight government regulations and rules affects the capital , liquidity, compliance, governance, risk management of investment banks. The performance of banks requires innovative and up to date technology, also for transparency across globe. The banks face several security threat like cyber threats and assets management failures.