Financial Innovation And Financial Upgrade

Since llit; 1970s, iiilriiialional Imanrial business lias cx|>criciiccd ;i jjjnyil mvolu-lion, represented mainly in I he disintegration t? international financial system, free interest rales and financial innovation. In order lo cover efficiently llie operation risk, lower operation eosl and increase o(X!raling efficiency, wesleni banks look active measures, making overall innovations in financial institutions, financial markets and financial tools, which produced satisfactory effects. From the 80s on, some other countries in the world began lo follow their example, and on a grand and spectacular scale have appeared a serie, of innovations, with the concept of "innovation" applied to all aspects of economy. For a while, "innovation" l>ecame the synonym of development. Expressions such as idea innovation, system innovation and organization innovation are always seen in official speeches and academic articles. In 1990s, in China, innovation is applied even in such fields as politics, economy and culture, because after more than ten years reform and opening lo the outside world, a lot of unsound aspects in politics, economy and culture are exposed, which are in great need of reform and innovation. Especially in the late 90s, in order to join as early as possible the "WTO", China speeds its process of economic modernization anil internationalization. Thus, the e-conomists, jurists and numerous practical workers are confronted with a great many e-conomic and legal problems."The Study of Financial Innovation and Financial Business Upgradation" is finished under such a background. It is initialed by the section "a completely new era that China's financial business is facing" and closed by a discussion of the index system and utility analysis of financial innovation and financial business upgradation". Illustrated from such aspects as organization innovation, financial tools innovation and financial market innovation and their relationships with financial business upgradation respectively, a basic principle that financial innovation is a prerequisite and driving forceof financial business upgradalion is elucidated tafore us."Finance is a comprehensive concept. It's an organic unity of banking, slock and insurance milter than a synonym of banking. Likewise, the n|>crnlion of financial insli-lulions is no longer discrete - operation, rather, il is cross- o|x:ralion based on the former. Stalling from licit:, approaching (mm (he following pers|x:clivcs, "the Study of Financial Innovation and Financial Business Upgradalion" concludes thai internationalization of intcnial financial market will naturally result in Shanghai Incoming the Far East inlemationul financial centre. 'Iliese |>ers|M:clivos are: innovation of banking sys-lem, slock system and insurance system; innovation of financial organizations, financial tools.and financial markets; operalion of financial institutions and evaluation of financial innovation of the financial institutions, 'lite innovation of financial tools and financial markets will naturally result in cmss operation in financial business, which in turn will result in China's financial market Iwing an integration which, ultimately, willi the open policy in economy ami finance Iwing a catalyst, will resull in its internationalization. By way of lliis causal ?effect relationship we dniw the above logical conclusion. When niuch mom detailed syslemalic infonnalion is called for, tJie following conlenls should be included in ihe illustration: management of financial inslilulions, supervision of die sujxjrvisory authorities, standardization of tlie financial market subject, infection of financial laws and systems, innovation of clearing payment system, with the last being a very ini|>orlanl com|x>ncnl. By means of working out strict measures and enforcing them can we ensure that the flow of thought from innovation of financial tools lo formation of international financial center can be realized. However, owing to die space and lime limit, it is beyond the sco|>e of my defence (...