On The Practice And Strategy Of Financial Innovation For Commercial Banks Of China

This thesis is a theoretical and practical study specifically on finance innovation and its operating strategy in China. Intensive points discussed are the current situation, problems and strategy. The full text is going along the logic path to launch the analysis: the introductive statements; Historical development for finance innovation; its formation and development in content; the risks that commercial banks run in financial innovation and, the strategy that China's commercial banks stand for.Chapter 1 largely revealed the points that concern about historical development and process of financial innovation both in China and abroad. Chapter 2 stated and gave some comments on definition, classification, basic characteristic and financial innovation system with its structure and lays as well as it motivation, environment and conditions. Chapter 3 expanded to investigate the risks in financial innovation, pre-warning mechanism and special performances for China's commercial banks. Chapter 4 is the strategy research of this study, analyzing the present condition and environment for financial innovation, comparing the differences in financial innovation between China and western countries, raising the strategy and focuses for Chin's commercial banks.Some of the parts below listed may come from my deep and independent thinking:1.To generate the five major characteristics on financial innovation, they are efficiency, time-leg, disequilibria, high risky and dummy. Based on it, an overall framework has been established and then the adapting financial innovation to our country is defined at present stage.2.To Analyze the theoretical blemish by western and national scholars on the motivation of financial innovation, initiated the motivation of financial innovation formation, prove that in the process of financial innovation, there exists a relation among financial innovation, level of commodity economic development, type of financial control and financial market structure, assert that the level of commodity economic development determines the level and extent of financial innovation, the types and financial market structure will decide the size of financial innovation. Evidences refer to a planned economy and its finance system did constraint innovation in financial sectors. A market economy with moderate control on finance would encourage financialinnovation, and the interrelation between financial control degree and financial innovation creative takes a shape of concave curve. The monopolistic competition as a market construction benefits most to the financial innovation activities, but complete monopoly as another market structure would be most disadvantageous in financial innovation activities.3.Combining with current situation of our country, this thesis completed a analytical work to special points on risks run by China's financial banks in their innovation.4.To research the practice of our country 's commercial banks in financial innovation, comparing the different points in financial innovation between China and western countries, and finally carry out the strategy and effective way to undergo financial innovation.