Contemporary financial innovations are diverse, wide-ranging and fast, and can be classified from different perspectives. There are various classification methods, which can be divided into proactive innovation and adaptive innovation according to the nature of the innovation activity itself; from the perspective of the origin and inducement of financial innovation, it can be divided into demand-induced innovation and constraint-induced innovation; according to the purpose of innovation, it can be divided into There are three categories: evading control, reducing costs, and avoiding risks; according to the degree of innovation, it is divided into two categories: transformative and creative. The former refers to changes based on existing business activities, management methods, institutional settings, etc., while the latter refers to Create new businesses, methods or institutions, etc. In April 1986, the Bank for International Settlements summarized the types of financial innovation in a report as: risk-transferring, liquidity-increasing, credit-creating and equity-creating innovations. In general, international financial innovation mainly includes three aspects. (1) Financial instrument innovation Financial instrument innovation means that the financial industry can timely create new and diversified financial products for the evolution and expansion of various forms of credit, such as payment methods, maturity, security, liquidity, interest rates, and income. Securities, bills of exchange, financial futures and other trading objects with new characteristics. The innovation of financial instruments is the most important content of financial innovation, and it is the basis of all other financial innovations. For example, innovation in financial instruments has led to the creation of financial futures based on traditional financial products and general commodity futures, mainly including interest rate futures, currency futures and stock index futures. (2) Financial market innovation Financial market innovation means that the financial industry actively expands the scope of financial business and creates new financial markets through innovation in financial instruments. The European securities market originated in the early 1970s. U.S. securities companies first set up branches in the European bond market in London and then set up branches around the world to conduct international securities transactions. Other countries have followed suit. By the 1980s, with the internationalization of securities trading and the continuous advancement of technology, the financial industry could not only engage in cross-border stock trading and bond trading, but also issue domestic bonds and stocks in other countries, basically forming a global securities market. The European bill market was formed on the basis of the original European syndicated loan market and European bond market. It combines credit and bond flows and has the dual attributes of short-term bank credit and liquid securities. (3) Financial system innovation Financial system innovation refers to the institutional changes carried out in financial organizations or financial institutions. It refers to financial innovation activities caused by financial authorities in various countries adjusting financial policies and relaxing financial controls, such as establishing new organizations and implementing new management methods to maintain the stability of the financial system. It also includes what financial organizations have done in terms of financial institution systems. reform.