Theory Of Financial Innovation

After 1970' s,financial innovation not only pushes on financial globalization, brings financial structure into a lot of change,but also accelerate global economic growth. Financial innovation in China pushes on Chinese finance marketization, financial structure tromsform and financial development. The author choices financial innovation as research subjet, wants to summarize the theory and practice of financial innovation all over the world in order to draw on the experience for deepening financial innovation.This article includes seven chapters. In the first and second chapter, giving the definition of financial innovation introducing the mechanism of innovation produce and restrain, the author analyses every factor of financial innovation, such as subject structure cost income needs and offerings.In the third chapter the author analyses the background of economy system technology and theory of financial innovation in 1970's at the Western counties.In the fourth chapter the author analyses positive effect of financial innovation to financial structure financial market and financial system and its negative effect to financial circles and monetary policy,give the development trend of financial innovation.In the fifth chapter analyzing the constitution of risk of financial innovation,the author introduces the supervise of financial innovation's risk and the proposal for strengthening supervise.In the sixth and seventh chapter focusing and basing on the Chinese financial innovation the author narrates the background and process of Chinese financial innovation, the author summarizes the theory of Chinese financial innovation and finds the five structural contradictory of Chinese financial innovation, give the proposal of advancing Chinese financial innovation and well handling some basis questions.