Follow-up: This is a short answer. Write more. A: Financial innovation is a general generalization, including many innovations in the financial industry. It includes not only the innovation of financial institutions and financial markets, but also the innovation of financial services. As far as financial business innovation is concerned, it also includes innovations in financial instruments, financial services, financing methods, accounting systems and payment systems. In the innovation of financial services, the innovation of financial instruments is the foundation. If there is no innovation in financial instruments, there will be no innovation in other aspects of finance. In recent 20 years, financial business innovation in the international financial market has become a new wave of financial reform, which has brought profound influence to the development of the financial industry. The direct cause of financial business innovation: 1. The progress of science and technology and the rapid development of modern communication technology provide objective conditions for financial business innovation. With the development of international economy and the rise of emerging electronic industry, great changes have taken place in the global banking industry. The original business operation mode and method can no longer meet the needs of business development and institutional increase. The fierce competition among banks forces banks to continuously improve their management level and work efficiency, effectively promoting the automation and computerization of banking business. 2. With the development of financial internationalization and liberalization and fierce competition among banks, banks have launched innovative businesses to avoid interest rate and exchange rate risks. 3. The credit reform brought by international capital flow and financing securitization has triggered the innovation of financial instruments. 4. Avoiding financial supervision also promotes the continuous innovation of financial business. In order to compete for the market and meet the different needs of different customers, financial competition is accelerating, which promotes the innovation of financial business. With the economic development of major western countries and the increasing concentration of industrial capital, financial capital tends to be concentrated and monopolized, and the competition in the banking industry is becoming more and more fierce, especially the formation of offshore financial markets. Financial institutions in these cities and regions are relatively concentrated and are not restricted by the laws of the host countries. In order to strengthen competitiveness, capital must be increased rapidly. Banks actively expand their business scope, expand market share, increase the source of customers, develop business varieties, increase the source of funds, improve asset quality, improve their ability to increase income, enhance their resilience in the international financial market, and constantly explore new financial services and financing methods. In addition, in order to occupy the market
What are the meanings and manifestations of financial innovation and the main reasons for promoting it?
Economists in different countries have different explanations for the reasons of financial innovation, mainly including technology development theory, demand-driven theory, wealth growth theory, monetary factor theory, institutional factor theory, regulatory evasion theory, structural change theory and so on. , but most of them focus on the role of a certain factor. Contemporary financial innovation should be the product of many factors under the specific economic background, the most important of which is the change of economic thought and the promotion of demand and supply.
What is the direct cause of financial innovation?
The development of market economy is the direct cause of financial innovation.
Analyze the causes of international financial innovation after the war.
1 financial innovation is the rapid development trend of western financial industry in recent years. The content is to break through the traditional management situation of the financial industry for many years and make obvious innovations and changes in financial tools, methods, institutions and markets. 2. International financial innovation includes financial instruments.
The innovation of market system and financial instruments is the most important content of financial innovation and the basic core of all other financial innovations. For example, the innovation of financial instruments leads to the emergence of financial futures based on traditional financial products and general commodity futures, mainly including interest rate futures, currency futures and stock index futures. The reasons for innovation can be summarized as: 1. First of all, risk aversion is the main reason for international financial innovation. Compared with the past, the financial markets in the 1970s and 1980s were more risky. The implementation of floating exchange rate system, the use of monetary policy tools in western countries and the outbreak of debt crisis have made the credit risk of exchange rate and interest rate increasingly prominent in the international financial market. In this context, investors and borrowers not only need to disperse and avoid risks, but also need to increase the liquidity of financial assets and expand the sources of funds. These realities need to be the main driving force to promote financial innovation. Secondly, the policy factors in the international market directly promote the development of financial innovation. On the one hand, the control of financial activities and capital flows by countries after the war led to the evasion of financial institutions and industrial and commercial enterprises. On the other hand, since 1980s, western countries have relaxed their control, and the trend of financial liberalization has dismantled the barriers of foreign markets and accelerated the process of financial innovation. The relaxation of international financial control has intensified the cross-competition among financial institutions, so multinational banks and some non-bank financial institutions actively participating in the international financial market must actively innovate in order to maximize the source of profits. The progress of science and technology and the rapid development of modern communication technology have accelerated the dissemination of information, reduced the income of traditional business departments and intensified price competition, thus promoting the innovation of financial institutions. In addition, the trend of neoconservatism and economic liberalization has also promoted the innovation of international finance.
Reasons for financial product innovation
(1) Historical accumulation.
Looking at the development history of western financial product innovation, from the 1960s, it can be divided into management innovation, risk transfer innovation and risk prevention innovation, and now all kinds of innovations are carried out at the same time. It can be seen that the product innovation of commercial banks needs historical accumulation and the continuity of innovative products at all stages. China's banks have changed from professional banks in the planned economy period to commercial banks in the market economy period, with only a history of more than ten years, and there are many shortcomings in management, banking technology and equipment, talent reserve and so on. Due to historical reasons, the problem of non-performing assets such as insufficient self-owned capital and bad debts in China's banking industry is serious and its risk tolerance is poor. These problems show the inherent fragility of China's banking system and are not conducive to the development of financial product innovation.
(2) Financial environment.
1. Domestic legal system construction is relatively backward.
In recent years, China's economic and financial environment is undergoing tremendous changes, but the corresponding laws and regulations can't keep pace. For example, bank wealth management business and electronic service business lack legal support. The contradiction between the requirements of product innovation and the relatively backward construction of laws and regulations will make emerging products hide certain legal risks.
.2. Financial supervision restricts financial innovation.
Internationally, financial supervision can not only inhibit financial innovation, but also promote it. However, the high savings rate of China residents and the high interest rate difference between deposits and loans make banks have no profit pressure, and the immature capital market makes banks lack the motivation to innovate. Therefore, financial supervision only shows a binding effect on Chinese banks. Financial supervision mainly includes interest rate control, foreign exchange control and banking business control. In terms of interest rate, although market mechanism has been introduced into interest rate management, interest rate adjustment is still greatly influenced by the national economic situation. * * * The high deposit-loan spread makes banks gain high profits steadily. At the same time, interest rate control deprives banks of the pricing power of product innovation, which makes banks have the inertia of product innovation. Even if they have the enthusiasm for innovation, they will lose their innovation ability because of regulation.
There are two problems in financial supervision. First, the regulatory concept is conservative, following a kind of "forbidden if there is no explicit provision in the law" and "allowed to do what can be done". Secondly, due to the restriction of the regulatory system, the product innovation of commercial banks can only be a low-level product innovation within the traditional business, that is, a higher-level innovation cannot be carried out in the cross-business of various financial institutions. In short, China's existing financial supervision methods have seriously restricted the enthusiasm of commercial banks for innovation.
The reason leading to financial innovation is (choice) 60 points.
Synchronous economy will definitely cause imbalance. After all, the development gap between countries is too big.
The promotion of scientific and technological progress can only build better development and will not lead to crisis.
International demand and production capital. If a country only produces cotton and no one uses it, it must be the source of the economic crisis. It's like steel is very cheap now, and no one uses recycled steel. Accumulated goods will die. C
Avoiding the financial system is to mess up the financial market. The consequences are very serious. D valve can only build a bright future with the strong support of the state.
Automatic call distribution system
What are the reasons for financial innovation?
Economists in different countries have different explanations for the reasons of financial innovation, mainly the theory of technological development. Demand-driven theory and wealth growth theory. Monetary factors, institutional factors, evasion of supervision, structural changes, etc. , but most of them focus on the role of a certain factor. Contemporary financial innovation should be the product of many factors under the specific economic background, among which the most important factors are the change of economic thought, the promotion of demand and supply, the evasion of financial regulation and the promotion of new scientific and technological revolution.
Why does financial innovation form a trend?
At present, human society is in an active period of financial innovation, especially in China. Financial innovation has become an important part of China's innovation and development. In particular, the development of the real economy has placed high hopes on financial innovation. Internet finance, represented by Yu 'ebao, has been given a relaxed environment by the state and the regulatory authorities, creating a broad development space for it, which is the embodiment of this expectation.
Since the day when finance appeared in human economy and society, it has started a long process of innovation. In addition to the changes in monetary carriers, the emergence of credit banks and other financial institutions, truly revolutionary financial innovation began in the 20th century.
Since the 20th century, human financial innovation has gone through four stages. In the first stage (1950s and 1960s), financial innovation was mainly to avoid supervision. Innovative financial products in this period mainly include Eurodollars, Eurobonds, parallel loans, autopay, mixed accounts and so on. In the second stage (1970s), financial innovation mainly shifted risks. Innovative financial products mainly include floating interest rate bills, federal residential mortgage loans, foreign exchange futures, interest rate futures and so on. In the third stage (1980s), financial innovation is mainly the diversification of financial product types. Innovative financial products mainly include currency swap, interest rate swap, bill issuing tools, option trading, futures trading, variable futures trading, automobile loan securitization and so on. In the fourth stage (from 20th century to present), financial innovation is mainly the combination innovation of financial products and the combination innovation of financial products and non-financial products. Innovative financial products mainly include bank securities, bank insurance and asset securitization of bank securities insurance business.
Throughout the 20th century, the global financial innovation center moved from Britain to the United States, and the future financial innovation center may move from the United States to China. Of course, the transfer of global financial innovation is not easy, which depends on China's grasp of the future financial innovation trend and the improvement of financial innovation ability. So, what is the trend of financial innovation in the future? Judging from the current format of global financial development, there will be three major trends.
The first major trend is Internet finance formed by financial networking. The core of internet finance is to pursue the three goals of convenience, self-help and inclusiveness with the help of information technology.
Internet finance pursues convenience, which is a fund intermediary, credit intermediary and risk intermediary business carried out by Internet finance through the Internet and big data technology and adopting a new risk management model. The era of big data is an era of asking for results without asking for reasons. If the results are recognized, you can enjoy financial services. Today's emerging PTP investment and financing model (this is a financial model from Britain, PTP means peopletopeople). Investors and financiers make "person-to-person" and "person-to-enterprise" loans and borrowings through online platforms. This approach has brought very convenient ways and means to investors and financiers.
Internet finance pursues self-help, which is different from the traditional credit risk financing model (that is, traditional bank financing). Risk management model, profit model and customer service model are all based on personal judgment and service. If you want to borrow money from a bank, the bank should first assess your credit risk and then decide whether you can borrow money. This is a lending model based on personal credit risk control. Internet finance will become the same as online shopping. What products do you want to buy, solve it yourself. The technical conditions of electronic human organs in the future can be completely realized. Mobile banking is now the beginning of this future.
Internet finance pursues inclusiveness, which is different from traditional banks. The essence of traditional banks is to love the poor and the rich. The richer you are, the more they love you. The poorer you are, the less they like you. The traditional bank is: give you more if you have it, and take it all away if you don't have it. Internet finance is inclusive finance. Everyone, rich or poor, can get financial services from the Internet. In the foreseeable future, internet finance will completely change the "yamen" of traditional banks. Now, the biggest obstacle is not access, supervision or technology, but credit. Although Alibaba, Alipay and Taobao have initially established the credit system of the financial system, they are not mature enough. Once a credit system that meets the requirements of Internet finance is created, traditional banks will disappear immediately, which means the arrival of the inclusive finance era.
Of course, the formation of Internet finance needs a series of innovations, including concept innovation, technology innovation, product innovation, tool innovation, system innovation, organization innovation and supervision innovation. Without this series of innovations, the Internet >>
What are the reasons for international financial innovation?
1. Escape from control. Avoiding financial supervision is the driving force for the continuous innovation of financial instruments. Many innovative tools in the west are created by American financial institutions, because the American financial industry is strictly controlled by * * *. Therefore, it can be said that the stricter the financial control, the greater the motivation for financial innovation, and the more active the innovation of financial instruments.
2. Technological innovation. With the development of information technology revolution and its application in the economic field, financial globalization has been further developed. With the continuous progress and wide application of science and technology, especially electronic computers, it is possible for the financial industry to provide customers with various financial tools and services with high quality and low price. 1990, CME and Reuters Holdings Limited jointly established a global trading system, which connects computer terminals all over the world and enables members who join the system to trade futures and options all over the world. The global trading system can be said to be the result of the application of science and technology in the financial field today.
3. Reduce risks. As mentioned above, since the 1970s, enterprises and individuals have faced huge interest rate risks and exchange rate risks due to the intensification of inflation and the implementation of floating exchange rates in western countries. New financial derivatives, such as financial futures, options and swaps, are all produced to meet the requirements of customers to reduce interest rate and exchange rate risks, so as to achieve the purpose of maintaining value or making profits. Among all kinds of innovative financial instruments, innovative instruments to reduce interest rate and exchange rate risks account for a considerable proportion.