Investment Banking

Oana Chindris-Vasioiu

Revista Economica, 2008, vol. 42-43, issue 5-6, 42-54

Abstract: The economic, financial and monetary changes had serious consequences not only on the level of providing the finance necessary for the development process but also on the level of providing the finance required for importing the basic food needs and rendering necessary production inputs. All these problems show the importance of “Banks” generally and “Investment Banks” particularly in the emerging and underdeveloped countries. Banks as financial institution or intermediary mobilize either national or foreign savings through accepting deposits and then use these mobilized savings in financing or funding any kind of economic activities, whatever they are production activities of goods or productive services or social and private services. Theoretically, and practically as well, some type of Investment Banks may effectively participate in pushing the wheel of development in order to overcome the difficult circumstances that these countries are going through. This effective participation might shown in providing an encouraging investment climate necessary for creating a powerful private sector that is capable to actively participate in establishing an agricultural, industrial and productive base as well as a service base of a new economic structure that contributes to facing the economic crisis and in the same time relieving the huge burdens shouldered by the governments of those countries. In fact, the Investment Banks can play a vital role in the development processes if they execute their main functions by providing finance to the private sector as well as expertise and knowhow in the field of economic feasibility studies, international contracting and market studies, as it will be presented in this paper. But whatever the differences and variations between Investment Banks themselves or between the economies all over the world, the Investment Banks practicing three principal functions; developing, financing and controlling functions. And the performance of the Investment Banks for these functions is affected by some factors and determents related to the banks’ policies and managements, and to the positions of the national economy; its applied regime, its operating and administrating systems and the nature of its witnessed growth stage, as well as the economical and financial climate through which said banks perform.

Keywords: Investment banks; emerging economies (search for similar items in EconPapers)
Date: 2008
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