A Study On Financial Product Innovation Of Local Joint-stock Commercial Bank

Financial innovation process of Western developed countries began in the late1960s,then it has become a global trend in the80s. It is the inevitable trend in the financialdeepening, but also the objective requirement of economic development to a certain extent.With the financial system reformation in China, local joint-stock commercial bankshave been well developed in asset quality, profitability, and etc. However along with thechange of world and domestic economic environment, especially after joining in the WTO,local joint-stock commercial banks faced with stern test. Local joint-stock commercialbanks should give full play to the advantages of the flexible mechanism, the correcttreatment and grasp the opportunities and challenges from all aspects, the mostfundamental is to continue to develop the distinctive financial products.The paper begins with the theory of the local joint-stock commercial banks productinnovation, and then defines the concept of financial product innovation and analyzes themotivation of product innovation for local joint-stock commercial banks. By the dataanalysis of real cases, this test observes and researches attention during the financialproduct innovation.All of that can provide practical sources on product innovation to localjoint-stock commercial banks. Eventually, we focus on the basic point and breakthrough inexploring financial product and reforming innovation mechanism,raise the strategy ofproduct innovation in order to provide references to local joint-stock commercial banks.The whole article is divided into5chapters, the first one introduces and overviews thisresearch on proposing, purpose, route, method, innovation, deficiencies and etc. Based onthis,the second chapter has sum up previous experiences and researches both domestic andforeign as related literature review of local joint-stock commercial banks’ financial productinnovation,by research background review and developing trend down to the third chapter,which is focused on introducing present situation of local joint-stock commercial banksfinancial product innovation, and characteristics of each. The fourth chapter is discussionand researches the specific practices in the process of local joint-stock commercial banksinnovating financial product, based on specific cases analysis.At last, the fifth chapter isthe conclusion and outlook. After investigation specific cases, we get the hint ofdevelopment of local joint-stock commercial banks in China,avoiding local joint-stockcommercial banks to detour as far as possible.