The Influence Of Financial Innovation On The Risk Taking Of Commercial Banks

With the promotion of financial liberalization and the development of information technology,the survival pressure of China's commercial Banks is increasing,so domestic commercial Banks have to expand financial innovation to improve their service capacity and competitiveness.However,until now,there has not been a unified conclusion on the path and effect of financial innovation on commercial Banks' risk taking.This paper theoretically analyzes the mechanism and effect of financial innovation on the risk taking of commercial Banks,and puts forward the corresponding hypothesis.Taking 25 listed commercial Banks from 2007 to 2017 as the research object,sys-gmm was applied to verify the influence law of financial innovation on their risk taking and the risk taking of financial innovation under the heterogeneous effect of commercial Banks' scale.The results show that commercial Banks' risk taking is habitual and continuous.Secondly,the influence of financial innovation on the risk taking of commercial Banks shows a "u-shaped" trend,that is,the initial stage of financial innovation promotes the risk taking of commercial Banks,and the development of innovation intensifies the risk taking.Third,the estimated results of the interaction terms between the heterogeneity of commercial Banks and financial innovation are significantly negative,that is,there is a negative scale effect.The robustness test supports the above estimation results.Finally,on the basis of theoretical analysis and empirical research conclusion,multi-angle,hierarchical put forward policy Revelations of the financial innovation to promote the commercial bank risk bearing,based on their own,perfect their own risk management mechanism,accurately grasp the financial innovation to its path and the influence of channel,on the basis of the development of commercial bank itself is reasonable,moderate the development of financial innovation,to improve their risk exposures.