| With Interest rate liberalization reform developing, China’s commercial banks face unsettled market environment, it is a challenge for commercial banks, also an opportunity. Commercial banks have a special status in China’s financial system, their risk level will affect the economy’s stabilization. Commercial banks have carried out business innovation, and business innovation of commercial banks can change the structure of income and their risk level. Therefore, under the background of the interest rate liberalization, studying the impact of innovation on the commercial banking risk is significant.This paper describes the history and current situation of China’s commercial banking business innovation, analyzing the influencing factors of commercial bank exposures, including commercial banks operating conditions, the level of external supervision, the macroeconomic environment, the level of competition in the market,focusing on its commercial banking business innovative path for risk impact,innovation from the business activity itself the risk of business innovation to increase revenue, business innovation stakeholders in risk appetite, changes in the macroeconomic situation and the perspective changes and other laws and regulations were discussed. Using DEA model, using the 16 listed banks in 2007--2014 in business investment in innovative technology, manpower, cost, investment and innovation output, calculated commercial bank business innovation. From three dimensions of the 16 listed banks, five state-owned banks, 11 joint-stock banks,empirical research studied the impact of commercial banking innovation on risk characteristics.And, the conclusion of the empirical research carried out robustness tests.The conclusion of this paper is still valid.The study founds: 1, whether the entire sample banks, or state-owned banks and joint-stock banks, commercial banking innovation helps reduce their risk levels. 2,in the sample of this article, compared to state-owned banks, joint-stock banks affecting business innovation for risk-taking is nonlinear relationship, theperformance level of commitment to reduce the risk to a certain stage, the performance level of commitment to increase the risk. 3, with the interest rate market advancing, overall risk of commercial banks takes a downward trend, but the interest rate reform affecting the level of risk is not obvious on the state-owned banks. 4. The more the assets of joint-stock banks, the less their risk, but the more the assets of state-owned banks, the more their risk; Higher capital adequacy ratio of commercial banks helped reduce risk.Finally, the conclusion of the empirical research carried out robustness tests, with fee and commission income accounted for the proportion of commercial and bank card fees banks as a proxy for business innovation to all the listed banks, state-owned banks and joint-stock banks were established panel model, while the linear impact study business innovation and risk-taking and non-linear effects, the test results and conclusions of this paper are basically the same.The interest rate reform is completed,and commercial banks are severely regulated, especially the pattern of "separate operation" of China’s financial industry is not broken, the commercial banks are more dependent on the traditional credit business, which is not conducive to long-term profitability of commercial banks goals. Business innovations of Commercial banks help to change this situation, the analysis in this paper has been verified, but past experience of commercial banking innovation can not be fully used for the future business, commercial bank management in business process requires to face the new situation to deal with pressure, maintain a reasonable proportion between assets and liabilities business and intermediate business, therefore, the commercial bank management’s clear strategic planning and excellent management capabilities can help commercial banks grow. |
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