Study On The Innovative Ability Of Business Of Listed Banks In China

With the rapid development of modern science and technology, the trend of economic and financial globalization is becoming more and more obvious. Especially, after China’s entry into the World Trade Organization announced the financial market comprehensive opening to the outside world, foreign banks with their own advantages enter into the domestic financial market, our country banking industry faces unprecedented challenges. Commercial banks is an important part of our country’s financial system, financial innovation is the main line in the development of commercial banks, but business innovation is the core elements of financial innovation. In the face of the complex financial situation at home and abroad, China’s listed banks are speeding up the pace of the business innovation and providing customers with a wealth of financial products and services in recent years, however, listed banks in China still exist such problems as under-powered, do not pay enough attention to the innovation, unreasonable structure and so on. At the same time, many factors such as innovation mechanism, the external environment, science and technology level, risk management and human resources also restrict the improvement of the innovative ability of business of China’s listed banks, therefore, business innovation of listed Banks in China still has large space for development and progress.This article adopts China’s 16 listed banks in China as the research object, with annual report data in 2014 of 16 listed banks as the foundation, from the perspective of business types, listed banks doing business in China can be divided into asset business and liability business and intermediary business three types, on this basis, from three aspects including the assets business innovation, liability business and intermediary business innovation in detail analyze the present situation of business innovation of China’s listed banks. On the basis of consulting domestic and foreign related research materials and combining with the current situation of the developmen -t of China’s listed banks business innovation, this article selects four first-level indicators of financial products and services innovation, human resources innovation, technology innovation, risk control and subdivides them into corresponding eleven secondary indicators, it constructs evaluation index system of innovative ability of business of China’s listed banks and applies the factor analysis method to the comprehensive evaluation and empirical analysis of the innovative ability of listed banks in China, the results show that, the first, China’s listed banks is not only by expanding its scale, but also need to rely on a good external environment to improve innovative ability of business. State-owned commercial banks in China continually expand its scale, although the comprehensive ranking is higher, but do not have advantage in a single index ranking. They need a good external environment boosting its innovative ability of the business. Second, China’s listed Banks exists unreasonable business structure in the process of business innovation, at present, business innovation of assets and liabilities of China’s listed banks is more in the process of business innovation, but less to intermediary business innovation, China’s listed banks need to shift its innovation of business structure. Third, the level of science and technology progress and development has played a key role in ascension of innovative ability of business of China’s listed banks, state-owned commercial banks do not attach importance to the role of science and technology in the process of business innovation, but joint-stock commercial banks are increasing investment in science and technology in order to promote the innovative ability of business. Fourth, the promotion of innovative ability of listed banks in China is closely related to innovative ability of human resources. China Merchants Bank invests in human resources innovation which played an important role in its higher comprehensive score. Fifth, innovation of risk control and management is helpful to improve the innovation ability of listed banks in China, one of the important reasons that integrated ranking of Bank of Communications behind China Commercial Bank is its ability of risk control and management is weak, which has an important influence on the composite scores.Therefore, we can improve the innovative ability of business of China’s listed ba- nks from the following aspects. First, to optimize the external environment of business innovation, establish and improve the relevant laws and regulations, should gradually relax financial regulation, establish and perfect the social credit system, which provides a good external environment for business innovation of China’s listed banks. Second, change structure of business innovation, continue to maintain the responsible for innovation of the assets business, increase the intensity of the intermediate business innovation, constantly broaden the channels of business innovation of China’s listed banks. Third, study and introduce advanced experience and technology of business innovation from the foreign developed country, increase investment in science and technology, to broaden the service channel by using network platform, pay attention to trade cooperation, joint development for providing rich and high quality financial products and services. Fourth, pay more attention to the introduction and training of professional talents, from two aspects including material and spiritual establishes and improves the talent training mechanism and constraint incentive mechanism to improve staff’s work enthusiasm, build a high-quality and professional team. Fifth, from two aspects of internal control and external supervision to strengthen the risk control and management of business innovation, gradually establish an effective risk management and prevention mechanism, we should improve the information disclosure system about business innovation of the listed banks in our country.