The Influence Of Innovation Ability Of The Listed Bank On The System Of Prudent Macro Management

After the financial crisis in 2008, academics and government officials are aware that there exist inadequate in the system of prudent micro management which only focus on the risk of single bank. In order to guard against and dissolve systematic risks, academics and policy makers focused on the system of prudent macro management while they criticized the system of prudent micro management. The system of prudent macro management finally got the attention of people, and has become a hot area of research.Banking innovation products, especially financial product, present a trend of rapid development since 2005. From the macroeconomic level, the product’s innovation of listed bank can reduce the social financing cost, optimize the allocation of resources, improve the economic vitality, and enhance market efficiency. From the medium level, listed bank can meet the demand of customers and the bank itself with improves the ability of product innovation, and it is also the way to achieve the maximum profits of bank. Moreover, product innovation is the inevitable result for the listed bank to adjust its positioning as the tide of the times.This paper mainly studies the influence of innovation ability of the listed bank on the system of prudent macro management. After the introduction of relevant theories of the system of prudent macro management and bank’s innovation ability, this paper analyzes new characteristics and problems of listed bank’s product innovation, and new challenges given to the system of prudent macro management.First of all, this paper summarized literatures both at home and abroad of the system of prudent macro management and product innovation of commercial bank. And it introduced some basic concepts of the system of prudent macro management, such as the necessity, target, subject, scope of regulation, and expounded the power and result of banking innovation. Secondly, this paper introduced some current problems of innovative products and business the listed banks, and then analyzed the influence of innovation ability of the listed bank on the balance sheet and macroeconomic. What’s more, this paper also introduced new challenges given to the system of prudent macro management. In the empirical part, according to the specific situation in China’s banking industry, this paper selected annual data of finance product circulation of 15 listed banks in China(Ping An Bank is not counted because of the change of statistical definition) from 2010 to 2013. Then establish the panel data model to analysis the influence of innovation ability of the listed bank on the targets of the system of prudent macro management. The results show that innovation products of listed bank do affect the targets of the system of prudent macro management. Therefore, it gives the evidence for the theoretical analysis. In the last chapter, according to the result of theoretical and empirical research, this paper puts forward policy suggestions on listed banks and regulators.