Financial Product Innovation Of Jinan Branch Of Industrial Bank: Performance Contribution And Strategy Analysis

In recent years, China's macroeconomic situation gone down, the reform of interest rate marketization accelerated, the financial disintermediation and the third-party payment raised, and the regulatory supervision on the commercial banks from the supervision department increased, so that commercial banks were facing more and more challenges in the process of development. Under the background, commercial Banks need to actively adapt to the new normal economy, complied with the financial reform trend, started from the actual needs of customers, combined with its own management characteristics, made a higher level of financial products innovation. The research significance of this paper included two aspects which were theoretical significance and practical significance. The theoretical significance of this study was reflected in that the commercial bank financial products innovation played an important role of the whole financial innovation system, especially under the background of China's interest rate,exchange rate marketization reform continue deepening and the RMB internationalization accelerated. Making a further study of the subject to explore a road to the transformation of commercial Banks has an important theoretical guiding significance. The practical significance of this study was that the study can discovered the insufficiency of financial products innovation policies of the CIB Jinan branch, then it can perfect its policies and used more effective policies to improve the competitiveness of its financial products, then improved its performance. The study can also provide a reference for other commercial Banks especially joint-stock commercial Banks to its financial product innovation.This paper analyzed the present situation in financial product innovation of the CIB Jinan branch, established an econometric model and did an empirical research about the relationship between its operating performance and financial product innovation, then the paper analyzed the financial product innovation strategy of the CIB Jinan branch. Specifically, Chapter 1 discussed the research background, research significance, main contents, technical route, research methods, innovations and disadvantages of this paper in brief. Chapter 2 combed the main literature about financial products innovation of commercial banks made by the domestic and foreign scholars. Chapter 3 briefly introduced the overall strategy and specific measures about the financial product innovation of the CIB Jinan branch, and also analyzed the achievements and shortcomings about the financial product innovation of the CIB Jinan branch. Chapter4 established a time series model, which used the ROE of the CIB Jinan branch in recent years as explained variable, and assets, non-interest income ratio, cost income ratio, LDR of the CIB Jinan branch as explanatory variables, though unit root test, granger causality test and co-integration test, made an empirical analysis about the relationship between financial product innovation and operating performance, which included long-term equilibrium relationship and short-term balanced relations. Chapter 5 based on the market environment of the CIB Jinan branch and its own management characteristic, used the SWOT model analyzed the overall strategy about financial product innovation of the CIB Jinan branch, and then separately analyzed the assets financial product innovation strategy, the liabilities financial product innovation strategy, and the intermediary financial product innovation strategy. Chapter 6 proposed the research conclusion.The innovation of this article lied in that the present research about the relationship between financial product innovation and business performance which used the empirical quantitative analysis was very little, and innovation strategy guidance of commercial Banks was very general, especially lack of guidance which considered the varieties of product innovation in the new situation. This paper will fill in the research blanks. This paper established an econometric model, made an empirical research about the relationship between financial product innovation and operating performance of the CIB Jinan branch. Then this paper used the SWOT model analyzed the overall strategy of the CIB Jinan branch financial products innovation, and then studied the strategy of assets product, liabilities products and intermediary products respectively. The mainly insufficiencies of this paper was the scope of the research is incomplete due to the internal confidentiality requirements, but the contribution of these products for the banks may be very important.