On The Financial Innovation Of Commercial Banks

1. Background of this dissertation"Innovation"became a hot issue in Chinese official speeches, documents and academic literature."Independent innovation"and"national innovation system construction"were put forward on the 5th plenum of the 16th Central Conference of the CPC. So in this paper I select the topic of"financial innovations in commercial banks".2. Structure and content of this dissertationThis dissertation contains preface and 4 parts, 9 chapters.Preface demonstrates background of this dissertation and the meaning of financial innovations to financial industry and national innovation system.Part one, including chapter one and two, probes into innovation and financial innovations.In chapter one I survey Schumpeter's innovation theory, and then analyze its achievement and insufficiency.In chapter two, I put forward a brief definition to financial innovation: Financial innovation is to restructure financial elements according to new financial production function by a variety of financial institutes.Part two, including chapter three and four, illustrates the motivation of financial innovation. In this paper, I cite Silber's"constraint-induced innovation"theory. Financial innovation falls into two catalogue: inside constraint-induced innovation and outside one.In chapter three I introduce"constraint-induced innovation"theory and inside constraint-induced innovation.In chapter four I discuss outside constraint-induced innovation: innovation induced by constraint of market and government.Conclusion: In order to realize Pareto's optimum of control and innovation, the game between supervision of government and innovation of banks should be cooperative game and repeated game: supervision-- innovation--re-supervision-- re-innovation.