A Study On Financial Product Innovation Of Commercial Banks In China

For commercial banks, Product innovation is not only the inexhaustible motive force for sustainable development, but also the basic guarantee to stand out of the fierce competition. Since the 1990s, China's capital market has gradually improved and the proportion of direct financing has been rising. Financial disintermediation has become more evident, the tendency of financial disintermediation severely squeezed the profit margins of commercial banks. Since 2006, China's financial market has been fully opened, Chinese-funded banks and foreign banks have been competed on the same stage, China's commercial banks will no longer take the advantage of relying on policies to protect existing market share, therefore, Product innovation has become the urgent and unavoidable choice to maintain the development for commercial banks. Actually, finance is the core of economic development, while the bank is the backbone of financial development, and thus the health in operation and the innovation in development of commercial banks are the effective accumulation to financial stability and economic healthy.Papers begin with the theory of the commercial banks product innovation, and then define the concept of financial product innovation and analyze the motivation of product innovation for the commercial banks .On this basic, papers research the basic situation of the commercial banks through analyzing the problems, status and necessity of product innovation for the commercial banks. As for the result, the develop of product innovation for the commercial banks has been made some achievements, but the financial product innovation mechanism is still not perfect, especially that financial innovation is lack of capacity for independent innovation, financial innovation is not in high level, the approaches of the innovation is still relative single, there are many improvement should be made. Reference to the development path of commercial banks in America and Germany, there are many experiences can be summed up, which include mixed operation, orderly system of strict supervision, the risk management awareness penetrated into the management, the scientific organizational structure, the business philosophy of customer-oriented, technology strategy for revitalizing the bank, protection of intellectual property .All of that can provide practical sources on product innovation to China's commercial banks. Based on the above analysis and combined with the bottleneck delay in product innovation of commercial banks, Eventually, we focus on the basic point and breakthrough in exploring commercial banking products and reforming innovation Mechanism, raise the strategy of product innovation in order to provide references to China's commercial banks.