Study On Financial Business Innovation Of Commercial Banks In China

With the opening of China's financial industry and the acceleration of the process of financial liberalization, more and more foreign banks entered China, their high benefits brought by the leading high-quality business contrasts sharply with domestic commercial banks,and brings great challenges and impact to them. Therefore, financial business innovation has become the key that the domestic commercial banks compete with the foreign banks. Seeking development from innovation has become the only way in which the commercial banks succeed.The financial business innovation in China's commercial banks is impelled steadily, and has achieved some success. But there is still a big gap between the developed countries and us. There are still many problems that the original innovation is less and the innovation efficiency is low;innovation principal part is absent and intrinsic motivation of innovation is inadequate;innovation emphasizes on quantity rather than quality;the comprehensive talent for financial business innovation are absent. These problems are mainly restricted by two factors,the internal factor is the operating conditions of the commercial banks and the external factor is the external environment.This article is from a new perspective of financial innovation to perspect the subprime mortgage crisis from which we have got some enlightenment for China's commercial banks'business innovation.The first is understanding the role of the financial innovation as the "double-edged sword "fully. The second is building the diversified business system based on the core business.The third is making solid foundation for the financial business innovation.The fourth is establishing and improving the credit system.The fifth is enhancing the sense of preventing risk and strengthening risk management.The sixth is improving the information disclosure system of the financial business innovation.The seventh is strengthening financial supervision and market restriction. Finally, it proposes the general idea for the commercial banks' business innovation combining with the enlightenment above and contacting with our practice. We should be in the light of the principle of market-oriented, client-based, profit maximization and risk to optimize the internal environment for commercial banks'financial business innovation by making concept innovation, business innovation and management innovation.We also should improve the external environment for commercial banks'financial business innovation by strengthening the cooperation of the bank,security and insurance industry,innovating regulatory mode,promoting the marketization of interest rates,establishing and improving the social credit system.