Comparative Studies On Intermediate Business Innovation Between Chinese And Foreign Commercial Banks

Firstly, by an in-depth study on Chinese commercial banking and their foreign counterparts, this paper points out the great differences of intermediate business innovation between Chinese and Western commercial banks regarding innovation products variety, scale, technology, etc.Secondly, comparing the institution regarding intermediate business innovation and microeconomic-body behavior of Chinese commercial banking with foreign ones within an analysis framework from the perspective of institutional economics and game theories, this paper shows that a number of reasons account for the emerging of intermediate business innovation, including external economic environments as wellas internal factors within the financial system and technology, among which the institutional factors within the financial system being the most important. At the same time, by comparison with western developed countries' counterparts, the innovation of Chinese banking institution lags far behind the development of banking business in main aspects of property rights, managerial system, compensation arrangement and organization system. Thus, the backward innovation of banking institutions and twisting microeconomic-body behavior seriously strict intermediate business innovation. Specifically, the dual principal-agent behaviors of "Government -Bankers-Sub-bankers" under the state-owned property structure have caused serious problems and resulted in the lack of incentives in intermediate business innovation.Finally, this paper proposes the path selection for the intermediate business innovation in China: innovation of property rights arrangement, sound managerial system for intermediate business, scientific development strategy, etc.