Study On Evaluation About The Carbon Financial Innovation Abilities Of Commercial Banks In China

Making constant carbon financial innovation is very important for commercialbanks to change and optimize their business. The innovation activities also haveimportant significance for the banking to take a part in the development of a lowcarbon economy in China. This paper constructs the system to evaluate the carbonfinancial innovation abilities of commercial banks. It is easier to find out theadvantages and shortages of banks in the process of carbon financial innovation byusing this system. The result can give suggestions when commercial banks makenew development strategies for carbon financial innovation, then advance thesupport of commercial banks to the low carbon economy development of ourcountry.Based on the literature review about financial innovation, the papersummarizes the carbon financial development characteristics of commercial banksin our country, and then defines the concept of carbon financial innovation ofcommercial banks. After describing the internal and external view about the theoryof financial innovation motive, the paper sum up the carbon financial innovationabilities as five dynamic elements which are the capacities of carbon financialinnovation in earrings, business, risk control, human resources management andtechnology application. Then the paper constructs the evaluation system for carbonfinancial innovation abilities of commercial banks. The paper uses AHP to analyzethe carbon financial innovation ability of16listed commercial banks in2010and2011. Result of the evaluation yields many insights including the following: theearrings, business, and risk control of carbon financial innovation are the three keyindicators; most large commercial banks rank lower than the joint-stock banks onthe total points of carbon financial innovation ability; large commercial banks dobetter in the increase of new business and the application of new technology; thejoint-stock banks have advantages in the earrings, risk control and human resourcesmanagement of carbon financial innovation. Finally, according to the analysis ofthe result, commercial banks should perform better in earrings, business, and riskcontrol to develop their carbon financial innovation capabilities.