Investment Bank and corporate governance with example of Pakistan

4.  An investment is an asset or item that is
purchased with the hope that it will generate
income or will appreciate in the future.
 In economic sense, an investment is the purchase
of goods that are not consumed today but are
used in the future to create wealth.
 In finance, an investment is a monetary asset
purchased with the idea that the asset will
provide income in the future or will be sold at a
higher price for a profit.

5.  A bank is a financial institution licensed to
receive deposits and make loans. Banks may also
provide financial services.
 There are two types of banks: commercial banks
and investment banks.
 In most countries, banks are regulated by the
national government or central bank. For
example State Bank of Pakistan.

6.  An investment bank is a financial institution that
offers a range of services from financial advisory,
underwriting, trading, raising capital, issuance of
shares and bonds, to advisory on mergers and
acquisitions. They are usually involved where
large amount of money moving happens.
 Investment Banks are Non-Banking Financial
companies (NBFC) and are regulated by Securities
& Exchange Commission of Pakistan (SECP).

7. Commercial Bank Investment Bank
Individual or small to
mid sized companies.
Loans to buy a house
or future education
etc.
Earns money through
the interest charged
on loans
 Companies/ Start-ups
 Borrows to finance the
growth of a company.
 Earns money through
the fees charged for
providing services

8.  Front Office
 Middle Office
 Back Office

9.  Helping customers raise funds in the capital
markets
 Advise on mergers and acquisitions
 Buying and selling financial products with
the goal of making money
 Researching industries, companies, and
products
 Setting the terms and conditions for any
form of deal

10.  Middle office usually consists of traders, analysts,
and managers who are knowledgeable of trading
activities but usually don’t engage in market
activities themselves.
 Another key Middle Office role is to ensure that
the economic risks are captured accurately and
on time.

11.  Making sure the bank runs smoothly by
maintaining databases, and check the day by day
operation.
 Every major investment bank has considerable
amounts of in-house software, created by the
Technology team, who are also responsible for
Computer and Telecommunications-based
support.

12.  Mergers and Acquisitions
 Underwriting
 Sales and trading
 IPO (Initial Public Offering)

13. Mergers and Acquisitions
In a merger, two organizations join forces to become
a new business, usually with a new name.
In an acquisition, on the other hand, one business
buys a second and generally smaller company which
may be absorbed into the parent organization or run
as a subsidiary.
Underwriting
Underwriting is the process by which investment
bank raise investment capital from investors on
behalf of corporations and governments that are
issuing either equity or debt securities.

14.  Sales and trading
The term refers to the various activities relating
to the buying and selling of securities or other
financial instruments. Typically an investment
bank will perform these tasks on behalf of itself
and its clients.

15. Initial Public Offering (IPO)
 First time offering of stock to the public
 Preparation of prospectus
 Prospectus circulate for review ( SEC review
the prospectus)
 Contract : Right commitment or Best Effort
 Tomb stone

16.  Charging consultant fee
 Interest on funds
 Commission

17.  Corporate governance is a system of rules,
processes, practices by which companies are
directed and controlled.
 Corporate governance concerns the
relationships among the management, Board
of Directors, shareholders and other
stakeholders.
 Good corporate governance contributes to
sustainable economic development by
enhancing the performance of companies.

18. No transparency, no trust; no trust, no credit; no
credit, no investment; no investment, no growth.
There is a simple logic: corporate governance and
financial reporting are an essential building block
for financial intermediation and sustainable
economic development.

19.  JPMorgan Chase.
 Goldman Sachs.
 Bank of America Merrill Lynch.
 Morgan Stanley.
 Citigroup.
 Barclays Investment Bank.
 Deutsche Bank.

20. Citigroup Inc. or Citi (stylized as citi and pronounced like "city") is an
American multinational investment banking and financial
services corporation headquartered in Manhattan, New York City. The
company was formed by the merger of banking giant Citicorpand
financial conglomerate Travelers Group in 1998
JPMorgan Chase & Co. is a U.S. multinational banking and financial
services holding company headquartered in New York City. It is
the largest bank in the United States, the world's sixth largest bank by
total assets, with total assets of US$2.5 trillion

21. Bank of America Corporation (abbreviated as BofA) is
a multinational banking and financial services corporation headquartered
in Charlotte, North Carolina. It is ranked 2nd on the list of largest banks
in the United States by assets.[4] As of 2016, Bank of America was the
26th largest company in the United States by total revenue.
Barclays Investment Bank (formerly known as Barclays Capital) is
the investment banking division of the British multinational Barclays,
and is headquartered in London. Barclays' first investment banking
arm was established in 1985

22. Corporate Governance Guide Lines
Board Composition
Board Focus
Corporate Governance committee
Board performance and development

23. Name City Website Address License Status
Escorts Investment
Bank Limited
Lahore
www.escortsbak.ne
t
Renewal in process
First Credit and
Investment Bank
Ltd
Karachi
www.fcibank.com.p
k
Renewal in process
First Dawood
Investment Bank
Ltd
Karachi
www.firstdawood.c
om
Renewal in process
IGI Investment Bank Karachi
www.igiinvestment
bank.com.pk
Renewal in process
Invest Capital
Investment Bank
Lahore www.icibl.com Renewal in process
Security Investment
Bank Ltd.
Karachi www.sibl.com.pk Active
Trust Investment
Bank Limited
Lahore
www.trustbank.co
m.pk
Renewal in process

24. The SIB was incorporated in Pakistan on May 23,
1991 and started its commercial operation on
December 31, 1991.
Established in 1992, Trust Bank is one
of the largest investment banks in the
country with branches in Punjab, Sind
and NWFP.

25. IGI Investment Bank Limited was incorporated in 1990 as
a joint venture of the Packages Group, American Express
Bank and the International Finance Corporation (IFC).
First Dawood Investment Bank Ltd. (FDIB) was incorporated
on June 22, 1994 as Dawood Leasing Company Ltd.