A Research On The Evaluation And Mechanism Of Financial Innovation Ability Of Small And Medium-sized Commercial Banks In China

Innovation is the lifeline of the development of commercial Banks,and it helps to maintain its influence,build their core competitiveness,and realize the sustainable development of the important factors.Based on the importance of innovation,there are many scholars having study on restricting factors,influence mechanism of large state-owned commercial Banks' innovation.However,there are seldom studies based on small and medium-sized commercial Banks,researching the innovation ability,constructing the evaluation index and collecting data to do empirical analysis.Considering the dramatic potential and development speed of bank industry,as well as the present market demand for financial,it has brought unprecedented opportunities for small and medium-sized commercial Banks,they will inevitably become a vital army in the bank sector,which support small and medium-sized enterprises,stimulate the prosperity and development of the private economy,enhance the quality of banking service and improvement of work efficiency,and promote the development of the change of financial system and economy.As a kind of endogenous development ability,innovation is the basic way to realize intensive development and enhance the competitive ability of small and medium-sized commercial Banks,innovation research on the development of small and medium-sized commercial Banks will produce important long-term significance in the future.Based on the fundamental theory of financial innovation,this paper analyzes the characteristics and present situation in innovation of small and medium-sized commercial Banks in China,it explains the connotation of the innovation ability of small and medium-sized commercial Banks,and explores how the different factors from bank inside and external market influence the innovation,and finally determines the innovation ability evaluation index system of small and medium-sized commercial Banks,including 7primary index and 17 secondary indicators.At the same time,combining data from the annual report in 2015 and network information of 20 small commercial Banks in,quantitative analysis have been carried to determine the sample Banks index data,and then select TTFA and PCA,with SPSS for data processing and analysis,to determine contribution rate,select the main factors,and build a complete set of evaluation index system of innovation ability,and thus calculate the score and ranking for the 20 banks.Finally,on the foundation of both theoretical and empirical analysis,this paper will give advices on how to improve innovation skills of small and medium-sized commercial Banks in our country from the aspect of governing structure,internal environment,configuration optimization,and business results.