Innovation And Development Of Chinese Commercial Banks

Every wave in the process of commercial banking development is initiated by innovation. Every stride forward of the commercial banking is also driven by innovation. Innovation is the motive force facilitating commercial banking development.Based on the innovation theories,the article introduces into the theoretical study of the commercial banking innovation such economic and natural science theories as trading expenses,game theory,system transformation and the theory of evolution. From the standing point of optimizing resources distribution,the article argues and proves that the development of commercial banks are connected with and promoted by several subjective and objective factors,but the dominant factor in the substantial breakthrough of commercial banks lies in innovation. Through the inductive and reductive methods as well as the logical inference and model construction,the article summarizes and describes the general process and laws of commercial banking innovation and development,and describes the various effect of the gradual,structural and mutant patterns of commercial banking innovation as well as their mutual dialectic relations,that is,mutation on the basis of gradual development and gradual development guided by mutation. Such an original and far-sighted systematic theoretical study makes profound theory of the commercial banking innovation more understandable to the reader,which is also a complete and scientific exploration regarding the commercial banking innovation. In this sense,it is in itself a process of innovation.The article makes an in-depth analysis on the definitions of commercial banks as rendered by the economic and legal worlds in and out of China,and studies the evolution process of the functions and business operated by commercial banks. On the basis of such an analysis,it is concluded that modern commercial banks are comprehensive and multi-functional financial institutions which aim at the maximum profits,and serves the industrial and commercial corporations or individuals to whom credit,deposit,settlement and various financial commodities are extended. This description breaks the limitation of the former definitions made of commercial banks,enriches and develops the basic connotation of commercial banks. To go further,the article studies the general rules and characteristics of commercial bankinginnovation,and describes basic meaning of commercial banking innovation in a systematic and scientific manner. It is then put forward by the author that the commercial banking innovation refers to a series of activities conducted by commercial banks to adapt themselves to the new business environment,reorganize and reform various financial factors so as to establish a "new production" in the field of the commercial banking and fulfill the demands of the society and commercial banks themselves. The contents of the innovation includes creation or introduction of new financial products,trading pattern,form of organization,operation and management theories and methods,and new financial supervision system,etc.. Such a definition not only accommodates the basic contents of commercial banking innovation,but also surmounts the restriction in time and space,hence is more pervasive and authoritative. It will greatly promote the in-depth study of commercial banking innovation in China.As a highly practical science,commercial banking innovation is most directly and typically reflected in business innovation. The article comprehensively describes the process in which the modern commercial banks widely apply new technology,and keep on creating various new financial commodities and trading methods. With the strong support of new technology,commercial banks break through the conventional industrial barriers,and head on to cross business operation and multi-functions. Such a trend blurs the boundary between different types of financial institutions,and greatly widens the range of operations conducted by commercial banks. Intermediary business innovation,in particular,adds more glamour...