Financial Products Innovation And Its Risks

Come in last twenty years, the financial market of our country has already obtained greater development, and the financial product category increases and perfects constantly. But there is very great disparity compared with developed country, even some new developing market economy countries and regions. At present, of our country financial product category lean towards little still, in small-scale financial market, and kind does not complete. So, strengthen financial products innovation dynamics to the scale that expands the financial market of our country, type of the perfection financial market, have positive realistic meanings.But can't ignore relevant financial risks while carrying on financial products innovation. Of our country financial organization existing problem a lot of even at present, and numerous hidden dangers. Financial risks are possible to happen too. Of our country financial institution take precautions against means of financial risks make use of various kinds of finance innovative products and shift, reduce or dispel relevant risk mostly very at present.While it is being benefited in acquisition that utilizing financial products innovation, must not ignore financial products innovation the financial risks brought. Financial products innovation and financial risks is an innate couple. While financial products innovation is used for evading financial risks, it brought new financial risks too. And this is exactly the research focal point of this text. In thesis, have analyzed the necessity, feasibility and strategy implemented step by step of financial products innovation of our country. Have described the origin, development and reason of financial products innovation in detail. Analyze the kind and form of financial risks. Use the west economy scholar's research results from many angles, and have summarized risk producing and the reason, mechanism, form of expression and characteristic the risk deepen in contemporary financial products innovation; Have put forward the principle, method that evades and control of the risk in financial products innovation. Finally, also introduced financial product development procedure and countermeasure and suggestion that our country should adopt.