On China's Commercial Banking Business Innovation

Finance is the core of modern economy. In the new century, the speed of economic globalization is accelerated. The operation of Chinese economy, finance industry in particular, is trying to comply with international practice. Nowadays, financial innovations, especially business innovations in commercial banks, are made one after another across the world, bringing great challenges to Chinese commercial banks. As the primary sector of Chinese finance industry, Chinese commercial banks play an important role in maintaining the stable and healthy development of the financial industry. In this case, it is a crucial obligation for the commercial banks of China to seize the opportunities brought by opening up of Chinese financial market to carry out business innovation and improve their ability of competitiveness. Based on the specific national conditions and drawing upon the advanced experience of foreign banks, this paper analyzes the present condition of business innovation of Chinese commercial banks, points out the existing problems and comes up with some specific suggestions. The first part briefly introduces the theories related to business innovation of commercial banks. Part II analyzes the domestic and foreign factors that lead to business innovation of Chinese commercial banks. Part III describes the present condition of business innovation and points out the existing problems. Part IV puts forward some strategies and suggestions in light of the experience of foreign counterparts.Only by making continuous business innovation can Chinese commercial banks form the business model with their own characteristics and only by taking extensive market research can Chinese commercial banks explore a new field of business, so that they are able to survive and succeed in the competition...