The Commercial Banks' Innovation And Real Economy Growth

The Chinese economy made a great progress in 40 years' reform and opening-up policy.However in the past high growth stage also accumulated many structural problems.Based on the situation assessment,Comrade Xi as the core of the Party Central Committee in 2015 the Central Economic Working Conference put forward the "Supply side economic reform strategy" offer a new direction for the economic transformation and upgrade.The major transformation of the current economic growth model will undoubtedly require new demands for financial innovation of Chinese commercial Banks,of which include: On the one hand,under the background of supply side reform,real economic sustainable growth require commercial bank to increase the financial supply effectively and to improve financial allocate efficiency through the financial innovation..On the other hand,under the trend of deleveraging and strict regulation,both the adjustment of the real economy and the deepening of the financial reform are calling for the financial innovation of commercial Banks,which is not only the external demand to solve the internal contradictions of the macro economy and to provide good financial services for the economy driven conversion,but also the internal demand for Banks to enhance their own efficiency,realize stable operation and maintain financial stability.Therefore,analyze the correlation between Commercial bank financial innovation and the real economic growth exist and study the mechanism of influence,analyzes the present situation and existing problems of financial innovation,put forward the general direction and implementation path of commercial Banks financial innovation under the background of supply-side reform has important theoretical and practical reference.This paper carries out the research according to the logical framework of“theoretical analysis-demand and problem analysis-correlation and impact mechanism analysis-path analysis”.First,this paper systematically analyzes the demand of commercial Banks for financial innovation caused by the growth of real economy under the background of supply-side reform.Then it analyzes the current situation and existing problems of Chinese commercial Banks financial innovation.Also points out the importance and necessity of the commercial Banks financial innovation to the sustained growth of the real economy under the background of supply-side reform,and analyze Chinese commercial Banks financial innovation of existing problems,.Based on the study mention above,further study of the influence of the commercial Banks to the real economic growth effect,and the direct and indirect effect mechanism,and then combined with provincial panel horizontal 2006-2018 13 years provincial data and the vertical time series perspective 2009Q3-2019Q2 40 quarters nationwide data on the current commercial bank financial innovation in-depth empirical analyze the correlation of real economic growth and the financial innovation's direct and indirect mechanisms.At last,this Paper learned the Experience and lessons of foreign commercial bank,Under the background of supply side the commercial bank financial innovation shall following the theme of stick to the supply side theme,adhere to the moderately innovation and restrain excessive,combines the condition of regional economic development,adjust measures to local conditions on innovation of direction.Finally,this paper proposes the action path of financial innovation for commercial Banks from three aspects,namely,business innovation,financial technology innovation,organization and system innovation,by using modern science and technology principles such as the Internet,big data,cloud computing,artificial intelligence and block chain,centering on the development of the industrial chain of real economyThe content of this thesis include:The first part,introduction and theoretical analysis.Including the first and second chapters of this thesis,is about the introduction,concept definition and literature review,describing the research background and significance.To start with,important concepts of this thesis including commerical banks' financial innovation,real economy are defined.Secondly,relevant theories including Xi Jinping's thoughts on the economy of socialism with Chinese characteristics in the new era,supply-side reform,financial development and theories on Commercial bank financial innovation operation mechanism are evaluated and analyzed,and then extract the this thesis' s enlightment from the theories mention above..The second part,status and requirements analysis.Including the third of the thesis,the demand of the real economy for financial innovation of commercial banks under the background of supply-side reform and the situation and existing question of Commercial banks' financial innovation is analyzed.Include:(1)Analyzes the Demand of real economy growth for commercial Banks financial innovation under the background of supply-side reform.The need of financial innovation for supply-side reform is the demand for the integrated development of real economy and virtual economy.This thesis explains the necessity and importance of the integration of the real economy and the virtual economy by expanding Fisher Extension,to provide enlightenment for the subsequent financial innovation direction.And then the essence of financial innovation of commercial banks is an important component of supply-side structural reform.This thesis demonstrates the necessity and importance of financial innovation to supply-side reform by means of mathematical simulation with the bank gambling equilibrium model,demonstrated the necessity and importance of financial innovation in commercial Banks to economic supply-side reform.(2)Analyzes the Chinese commercial Banks financial innovation process,status and existing problems.Based on the analysis of facts and data,this thesis argues that the China's commercial Banks financial innovation has achieved certain results in supporting economic development and transformation by expanding supply and enriching products,but there are still problems such as the inability to effectively meet the needs of real finance,structural contradictions and insufficient innovation in supporting key areas of real finance.(3)Analyzes the experience and lessons of foreign commercial Banks financial innovation,especially the lessons of excessive financial innovation leads to irrational expansion and disconnection from the real economy demand.The third part,include the fourth chapter of this thesis,mainly use normative analysis methods analyzes the correlation and mechanism between financial innovation and real economy under the background of the supply side theme.Include:(1)Analyzing the positive impact of financial innovation on the real economy and the negative impact of excessive innovation on the real economy to illustrate the dual nature of the impact of financial innovation.(2)Elaborated the mechanism of financial innovation's influence on the real economy is.The indirect influence mechanism of financial innovation on the growth of real economy through influencing consumer demand,capital accumulation and technological progress is named the indirect influence mechanism(Elements and structural paths),and the mechanism that promotes financial development and directly realizes the growth of real economy is named the direct influence mechanism of financial innovation on the growth of real economy(Financial development paths).(3)Using the methods of mathematical figuration demonstrate the correlation between the commercial banks innovation and real economy growth.Through the establishment of a six-sector endogenous economic growth model and the Coub-Douglas Function production function framework,this thesis analyzes the endogenous mechanism of the interaction between the traditional deposit and loan and innovation departments and the important sectors of the system of real economy,and explores the optimal growth path of the relevant endogenous variables.The results show that bank financial innovation has a non-linear promoting effect on the growth of real economy,and the elasticity of financial innovation efficiency has a significant pulling effect on the steady growth of real economy.Product elasticity ? also has a non-linear effect on the steady growth of real economy but it is close to linear.According to mathematical model analysis,the nonlinear effect of financial innovation efficiency is more significant than that of financial innovation scale.The fourth part,under the background of supply side reform empirical research,the correlation between Commercial financial innovation's and its mechanism,based on the aspect of the horizontal panel and longitudinal time series analysis,including the fifth chapter,sixth chapter.Include:The fifth chapter,this chapter is based on the data of 31 provinces from 2006 to 2018 horizontal analysis commercial bank financial innovation and economic growth nonlinear relationship and stage heterogeneity and regional differences under the supply side reform back ground by using the smooth panel transformation model(PSTR)to the following conclusion:(1)The China's commercial Banks financial innovation has a positive effect on the growth of real economy in total bus severe imbalance exists.the whole scale of commercial bank financial innovation and efficiency indicators for real economic growth promoting effect is enhanced,and from negative to positive trends,the current commercial bank financial innovation as a whole in moderate range,based on the empirical test of the commercial bank financial innovation nonlinear effect;However,through the analysis of nonlinear transformation mechanism,discover that the transition function(g-value)is distribute widely and the speed of mechanism transition is relative slow,combined with provincial commercial banks innovation figure in the sample period,indicate that the commercial banks financial innovation exists server imbalance in the provincial level.(2)Chinese commercial Banks should keep the appropriate financial innovation scale and should focus on improving the innovation efficiency and improving the quality of serving the real economy.By comparison the nonlinear conversion mechanism when the scale of financial innovation is taken as the threshold variable and when the efficiency of financial innovation is taken as the threshold variable,indicating that the nonlinear effect of the scale of financial innovation is relatively strong.At present,Chinese commercial Banks mainly rely on "scale effect of financial innovation" to drive the growth of real economy.However,the commercial Banks' financial innovation efficiency index of plays a better role in promoting the growth of real economy than the financial innovation scale index.Such empirical results indicates that commercial Banks should not only maintain the appropriate scale of financial innovation,but also focus on improving the efficiency of financial innovation.(3)Chinese commercial Banks financial innovation exists the stage heterogeneity under the back ground of the supply-side reform.After the supply-side reform,the commercial Banks financial innovation plays a more significant role in promoting the growth of real economy than before.it is concluded that it is effective for commercial Banks to take innovative measures to better serve the real economy after the supply-side reform..(4)Chinese commercial Banks financial innovation exists regional differences.Through the analysis of the regional differences,found that the commercial bank financial innovation effect,in the eastern,central and western differences in eastern and central reached a turning point when the financial innovation indicators across the gate value can cause negative effects,and the west due to the low degree of financial development,presents the phenomenon of increasing marginal utility,still shows the current commercial Banks in some areas has been excessive financial innovation.(5)Chinese commercial banks financial innovation also has a gradual positive nonlinear influence on the Real economy core industry(Manufacturing industry)development.Through the robustness test with independent variable substitute obtained the similar results,Among them,the positive effect on the growth index of manufacturing industry is significant,but the positive effect on the manufacturing industry structural optimization index is relative weak.(6)Chinese commercial banks financial innovation,exists the lack of coordination the stability of the results of the master model is verified through robustness analysis..Furthermore,there is a difference in coordination effect.The coordination effect of Chinese commercial banks financial innovation and capital accumulation on real economic growth is positive transformation;meanwhile the coordination effect of commercial banks financial innovation and technology research is negative transformation.Secondly,the sixth chapter is mainly based on the national data of 2009q2-2019q2 and the data of 16 major listed commercial Banks,and from the perspective of time series,it vertically verifies the action mechanism of the financial innovation of the micro-subject of commercial Banks on the "micro-macro" growth of the macro-real economy.Specific research contents include:(1)This thesis collect 16 main listed banks 2009Q3-2009Q2 five dimension namely financial business innovation development(scale)dimension,financial business innovation efficiency dimension,financial innovation risk control dimension,financial technology innovation dimension and financial innovation support the real economy demand dimension fifteen relevant figure.Through the principal component analysis(PCA)construct the index of 16 main public commercial bank financial innovation,the results show that the overall innovation of bank of China,China construction bank,industrial and commercial bank and bank of communications still occupied the first four indices in location(in the due to the banks above have larger scale on innovation business,besides,bank of Beijing,China merchants bank,and other new business is good medium-sized Banks follow;(2)Based on the 16 listed commercial banks innovation index the constructed the Commercial Bank Innovation Index(BII)observed the trend of the index and analyze d its phase characteristics.The overall trend shows a steady growth trend.Analyzeits phase characteristics The BII experience the phase of Sustained growth(2009Q2-2012Q4),fluctuation and adjustment(2013Q1-2017Q4)transformation and recovery(2018Q1-2019Q2)phase.After the Supply-side reform The BII experiencing a period of fluct uation but through business transformation and adjustment,the BII quickly recovered a nd continued to grow again.(3)This paper constructs the SVAR model of indirect action mechanism(Which include capital accumulation,technology progress and industrial upgrading variables)and direct action mechanism(Which include financing scale,financing cost and saving investment conversion variables).The empirical results show that:First of all whether it is the indirect mechanism or the direct mechanism,the financial innovation of commercial Banks plays a role in promoting the growth of the real economy,and both of them show a trend of rapid growth in the short term,fluctuation in the medium term,positive trend in the long term,and weakening overall influence.Secondly,the promotion effect under the indirect action mechanism is more significant than that under the direct action mechanism,the correlation value is larger,and the explanation degree is higher,indicating that the promotion effect through macroeconomic factors is stronger than the direct effect of financial development.Commercial Banks financial innovation should change the extensive mode of simply expanding the financing scale and should focus on supporting the real economic factors accumulation and structural optimization accurately.under the indirect action mechanism,financial innovation of commercial Banks has repeated influences on capital accumulation,and has positive influences on technological progress and industrial upgrading,but the duration is short.Fourthly,under the direct action mechanism,Commercial Banks financial innovation has weak positive effect on the financing scale but with severe time lag,but Commercial Banks financial innovation have positive effect on financing costs reduction and the optimize Savings investment conversion functions.The fifth part,the seventh chapters,mainly focuses on the analysis of the general direction and the paths of commercial banks' financial innovation under the background of supply-side reform.Include:To begin with,is puts forward the general direction of commercial Banks financial innovation under the background of supply-side reform.That is,closely follow the main theme of supply-side reform,optimize the allocation of resource factors,and meet the current demand of the real economy;Adhere to moderate innovation,curb excessive innovation;Carry out financial innovation according to local conditions to effectively support the economic development of different regions;Effectively promote the integration of science and technology and finance,,and establish an organizational structure and system adapt to the external real economy transformation.Then is the path of business innovation.which include first,.develop new financial product which meet the demand of growth driven change to support industrial upgrading,optimize comprehensive financial services capability to support "three cuts and one complement",improve the financial product interest rate pricing mechanism,enrich personal financial product,online and offline integrated development,strengthen cost control and dedicated asset and liability management etc.Then is the path of financial science and technology innovation.which include,Use big data technology to explore and evaluate customers.Use cloud computing technology to build intensive business platform.Use artificial intelligence technology to promote the intelligent transformation of key business field.Using blocks chain technology to create efficient products and services system and integrated application bottom-level cutting-edge technologies realize integrated innovation etc.Then it is the path of organizational and institutional innovation.which include Build a matrix commercial banks' organization structure oriented by business development,Improve the financial innovation system build a financial innovation collaborative guarantee mechanism.In conclusion,this thesis,through systematic and innovative research,enriched the relevant theories of commercial Banks' financial innovation to promote the real economy growth,and provided feasible Suggestions for Commercial Banks financial innovation to support the real economy growth effectively under the background of supply-side reform.