The Research On Financial Innovation Of Commercial Bank In China

Since1960’s，with the release ofregulation，the establishment offloating exchange ratesystem and the adoption of computer and communication technology in financial field，financial innovations surged in western countries’commercial banks that result creating manyfinancial trade tools.By contrast，China’s commercial banks lag far behind in the field offinancial business innovations．Because of across-the-aboard open, Chinese commercialbanks are faced with intensive threats and challenges. Foreign banks are occuping the marketof china, with their perfect business model and ability of production innovation. So it isimportant for Chinese commercial banks to innovate in business.Firstly, the paper introduces an overview of the concept、features and some theories aboutthe reason of finance innovation of commercial banks. Then compare the restricting theorieswith others, find it is the excellent one which is adapt to china. According this theory, I foundthe model of analyzing innovation reasons of Chinese commercial banks. By two sides, weanalyze the reason of Chinese commercial banks. Combining the developed trends andconditions of Chinese commercial banks, I conclude that innovation should pay muchimportant on mixed operation, private banking, intermediary business, and electronic bankingbusiness. Finally, we give some suggestions to promoting financial innovation of Chinesecommercial banks.