Year: 2025
Type: article
Abstract: The current state of financial markets is dynamic, rapidly evolving, and characterized by the emergence of new mechanisms for investment activities. Therefore, investment banks play a crucial role in ensuring their growth and maintaining stable operations as active participants in the mobilization of financial resources. Moreover, they serve as a key instrument for managing financial resources, mitigating risks, and implementing innovative business development solutions. Amid the transformational processes of the global economic system, investment banks can act as a mechanism for facilitating the inflow of foreign direct investment. Thus, in the face of contemporary digital challenges, the role of investment banks within the financial system can be defined through the identification and analysis of their key operational areas, enabling adaptation to new challenges and societal needs, as well as the development of effective strategies for their further advancement. This article aims to highlight the main areas of activity of investment banks. Within this scope, it explores the historical background of investment banking and describes the structure of an investment bank. Given the complexity of the investment banking structure, the classification of banking institutions into groups such as “Bulge Brackets,” “Middle Market,” “Regional / Industry Boutiques,” and “Elite Boutiques / Independent Advisors” is provided, along with their respective representatives. Based on the conducted research, the article identifies the advantages and disadvantages of the aforementioned investment bank groups. Additionally, several factors distinguishing different categories of investment banking institutions are examined. The study presents the Top 10 leading investment banks in the United States in 2025, including their market capitalization, total consolidated assets, and key characteristics. Furthermore, it discusses investment banks headquartered outside the United States that hold significant influence in the financial sector. The execution of financial transactions by investment banks occurs through a series of interrelated stages, which allows for the classification and detailed examination of the key functional areas of these institutions.
Source: Black Sea Economic Studies
DOI: 10.32782/bses.91-2
Authors: Khrystyna Drymalovska, Andriy Antoniv
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4409901201