Financial Innovation And The Development Of China's Commercial Banks

Innovation in finance is the main problem that is paid much attention to by so many people in medium newsreporting, academic and financial field pay much attention to. Generally, finance innovating means innovation in products, styles of taking part in the financial products exchange, all sorts of agency, market system and custody system. Innovation brings not only the new chances to gain profits but also the new risks. As any innovation means of setting down the new playing rules, it can change the advantage pattern disparately. Financial institution such as bank must change to adapt to the situation as well as and transform by itself in the process of innovation, which consists of the developing process of commercial bank. Financial innovation is a historic category. International monetary system went through more than once financial innovation since the primary banking has been emerged, not only in the traditional operation, but also in the whole sphere of financial system.The motivation of financial innovation comes from several facts, so its form of representation is diversiform. Financial system innovation, financial market innovation and financial operation innovation are the main aspects of financial innovation. This article defines the means of the financial innovation, concludes the basic frame of financial innovation and classifyies financial innovation into dominating financial innovation and evocable financial innovation. The aim of this article is to analyze the inner relationship of financial innovation and commercial bank's development. In the author's opinion, the innovation of micro-financial institute delegating by commercial bank decides the direction of financial innovation's development and plays the main role in the financial innovation system. But innovation of financial market and the financial system is hysteretic to the financial operation innovation; in other words, the operation innovation brings on the market innovation and system innovation.In order to analyze the financial innovation's influence upon the commercial bank's development, this article divide the influence into two groups of factors: one is the exterior factors on which the bank depends in its development.(exterior...