Study On Commercial Bank Financial Products Innovation And Imitation

There happened revolutionary changes in financial field since 1970s.These changes were called financial innovation. But financial innovation were became catch sb.'s eye phenomena genuine after 1980s. It concludes the innovation of financial products financial, market, financial organizations, financial exchange technology and financial academic. And the most important innovation is financial products or derivativesThe main reason of international financial innovation are international economical condition and the requests of enlarging operation,increasing profits. As the developing of Chinese economics and policy of reform and opening-up, the financial market must keep more developed. Therefore, the supply and require of financial products also will be changed. The financial products innovation market develops very fast after the reform of our commercial banks. But the gap is still large in products profits and risk elude with commercial banks in developed countries. There are still many issues need resolve in the innovation mechanism and decision-making mechanism of financial products. There have very realistic meaning to study financial products innovation mechanism.This paper firstly analyses the chief questions of financial products innovation in our commercial banks. I also describes the basic character,risk and elude measure of financial products. Then I analyses the reason of lack of financial products innovation. I find seven factors including advanced technology and organize structure inside react remarkable effect from using factor analysis and regression analysis. But I think the key factors that need improving are incentive mechanism to employee. Then this paper design appropriate incentive model by principal-agent theory. It could make bank agents working hardly for principal's benefits. Moreover it use real option theory design the optimal imitating timing on decision-making of financial innovation products. It depends on the factor of network technique, R&D ability, service quality and expect market share. It could take full advantage of aftereffect so as to get maximum benefits. And it could change the condition of blinding imitation financial products. At last, it is proposed corresponding policies and suggestions in macro, micro and mid-scale studies.The main work and innovation of this paper is:(1) Establish the notable factor and ameliorate factor by demonstration analysis. Then design incentive mechanism by principal-agent theory. And policies and suggestions are proposed. (2) Get the optimal imitating timing for other commercial banks to imitation recently financial innovation product by real option model. It could reduce the condition of blinding imitation, regulate financial products innovation market system and increase the profits of financial innovation products.