China's Commercial Banks, Financial Innovation

In modern society, financial development has become an important factor and a major driving force of economic development. Since financial innovation is a critical element in promoting financial development, studying financial innovation has theoretical and practical implications.The first section of this thesis discusses the purpose of this study.The second section of this study is to investigate the benefit of financial innovation.The third section compares the motivation of financial innovation between foreign commercial banks and domestic commercial banks. We show that domestic commercial banks' financial product innovations are motivated by financial constraints, intense competition and scientific and technological innovation.Section four introduces the background of the innovation of China's commercial banks. At the same time, innovative products on the financial cost-benefit, risk analysis have an impact on the financial innovation on China's future development.Section five presents the constraints of financial innovation in China's commercial banks.Final section reveals the risks of financial innovation in risk control program.