The Research On The Financial Innovation Of Commercial Banks In China

Commercial banks played an important role in our national economy as important creditintermediaries and payment intermediaries. In recent years, with the changing economicsituation as well as the entry of foreign banks, commercial banks began to face tremendouspressure and began to engage in financial innovation in order to enhance marketcompetitiveness. In this context, the article elaborated the theory of financial innovation andintroduced financial innovation of foreign commercial banks, also this paper analyzed theinnovation status, the problems and causes in China’s commercial banks, finally cited relevantrecommendations.The first part is introduction. It introduced the research background, the researchsignificance as well as domestic and foreign research results.The second part is the theoretical basis. This part firstly introduces major westernfinancial innovation theory, namely the constraints inducible financial innovation theory, thereform theory, the control theory, innovation theory of transaction costs as well as other majorfinancial innovation theory.The third part introduces the financial innovation status of commercial banks in China.The fourth part pointed out the existing problems and analyzed the reasons.Part five of this article is conclusions and policy recommendations.