Financial Innovation's Institutional Environment

Since 70's in 20 centuries, the international financial innovation developed very quickly, the innovation level is raising day by day. The unprecedented new financial tool and technique has reformed the traditional financial industry to a large extent, and make the contact of virtual economy and real economy more close. The preface part mainly introduced the domestic and international financial innovation development trends, and gives the research background and the meaning of this topic.The second part described the financial innovation theories and the existing research result to carry on a comment. Since the 70's in 20 centuries, some scholars start to apply the innovation theories in the research of finance theories to explain the financial innovation reason, mechanism and influence along with the financial creative development. To the 90' s, the financial innovation theories basically became system, among them, the contents of the financial innovation reason theories and the relation of the financial and financial risk had become the most important research realm.The financial innovation's exterior environment essentially belongs to the institution economics. The third part mainly use the institution economics to analysis the financial innovation's exterior environment, and also use the financial ecology research result which has newly arisen. The innovation of the financial institution can be divided into the financial bargain institution innovation, financial organization institution innovation and the financial guarantee institution innovation, among them, the financial guarantee institution innovation can be regarded as the financial innovation's exterior environment. The core of the financial innovation' s exterior environment is the financial guarantee institution which are mainly constituted by the financial infrastructure and the financial regulation institution.The fourth part analyzed the main environment factor, such as: Legal environment, reputation environment, the financial regulation environment, market foundation standard, pay settlement system and market responsibility norm etc.. Among them, the legal system environment is the basic sector and exertive foundation function; The reputation institution and market foundation standard are the important factors of the financial innovation activities; The finance regulation system directly interferes and influences the financial innovation activities; The level of the market foundation standards decide the finance innovation potential; The pay settlement system and rules are important infrastructures; The market responsibility norm definition among the government, regulations and market participator' s relation and risk responsibility to undertake, which is the important standard of the financial market's mature degree. The western mature market economy nation had developed the advantageous financial innovation institution environment over a long period of time; its advanced experience is very useful for our country' s financial innovation. In this part, I introduced the financial innovation developed experience of the USA, UK, the countries of European Continent and some new market countries.The fifth part carries on an evaluation of Chinese financial innovation exterior environment, and aim at the current problem ,the sixth part give the policy suggest of improve the exterior environment to put forward financial innovation development. China has accelerated its financial innovation step from the end of 90's in last century, through 20 years continuously developed, the institution innovation, the financial products innovation has developed quickly in the recent period. But the imperfection of many institution environments has limited the financial innovation's development. It's important to make the institution environment more valid as soon as possible. The last part put forward some suggestions, such as improve the most needed environments, raise the strength of financial market infrastructure, strengthen the financial innovation's legal construction, perfect the regulation system and enhance the company management standard and strengthen market education's etc..