Study Of Financial Innovation Of China's Commercial Banks

Commercial bank's financial innovation since the 20th century 70's refers to thefinancial transformation, the financials tool, the financial service, the financial systemand the financial markets. Western nations which took the commercial banks as themain bodies of financial industry, made the transformation to avoid the interest raterisk, circumvent the financial control, to meet the new market competitionenvironment.China joined World Trade Organization, and enhanced the degree of openness.This change brought forward new request to the rapid enhancement thecompetitiveness of the banking industry. This change calls for the banking industry tospeed up the innovation.This article mainly analyses the commercial bank's financial innovation in China.By introducing of financial innovation's connotation on this paper elaborates to thefinancial innovation theory. Then, by reviewing the 20 years course which ourcountry's financial innovation passed through, this paper summarizes our country'sfinancial innovation characteristic with emphasis. This paper also analyses the presentsituation and points out the difficulty and the existing barrier. This paper lays thefoundation to further analyzing the necessity to domestic commercial bank's financialinnovation. This paper discusses the most prominent problems in China's Commercialbank's financial innovation. This paper explores the new way of domestic commercialbank's financial innovation in multiple perspectives, such as system, operation,technique and so on.