Commercial Banking And Financial Business Innovation System Research

In modern market economy, banking and finance is becoming more and more conspicuous to such an extent that the financial development, with its great applied force, infiltration and driving force, has been an important factor to and a major force of the economic development and forceful enough to affect or even determine the development of the whole national economy. And it's the financial innovation that pushes finance forward by creating or introducing objects with brand- new qualities and characteristics, thus makes itself become the inner force-origin of the financial development. Financial innovation in advanced western countries started in 1960's, while ours emerged after the Reform and Opening-up. But with the establishment of the Socialist Market Economy and the development of the Reform and Opening-up, financial innovation in China is inevitable to develop more smoothly and to play a significant role in the systematically financial reform and financial development. Innovation practice should be based on scientific theories but the research on financial innovation in our country is still at its starting stage, as a result, it's urgent that we carry out systematic and serious research right now. For this, it will be systematic analysed on financial innovation in this article.With references of financial innovation explanations in western world, this essay provides inductive introduction about the characteristics of financial innovation development in our country. By further exploring the cause of financial operation innovation for commercial banks, this essay also discusses the basic principles and possible approach for the innovation process, as well as solutions for some potential problems, the cost effect of financial innovation is evaluated by using margin utility theory. Then in final part of the essay, Shenzhen Department bank as a example is analysed.