The Financial Innovation Of Local Commercial Banks

With the acceleration of financial liberalization and internationalization, the competition in financial market is getting more drastic. Financial innovation is a necessary means for Laishang Commercial Bank (LCB) as a city commercial bank to main vitality and gain advantage.This paper analyzes the problems of LCB innovation according to the current circumstance of local commercial banks and the advance native and external experiences. Taking LCB for example this paper provides some ideas and advices for LCB innovation according to native and external environment.The local commercial banks have made some progress in financial products and instruments. But because the local commercial banks lack of technology and support of policy, its space of financial innovation is slow. The governance structure of LCB is poor, and the number of financial products is small. Faced with inflation, increasing financial risk and the decline of profit, LCB has to take measures to improve its operation. I think financial innovation is the way for LCB to survive and develop. LCB needs to change its instruction, financial constraints and create more personal financial products, strengthen cooperation between banks, improve rural financial services. Introducing strategic partner is also a good way to develop.