1. Review of Western Financial Innovation

Schumpeter was the first economist in the West to systematically study innovation theory. Unfortunately, he did not Studying financial innovation, combining his definition of innovation and the development of financial innovation

History, we can define financial innovation as follows: Financial innovation is the use of new concepts by financial institutions

, new technologies, new management methods or organizational forms to change the mix and combination of basic elements in the financial system, and launch new tools, new institutions and new markets

market, improve the flow efficiency of financial assets, and achieve a high degree of unity between risk avoidance and profit pursuit

.

In this sense, the development history of financial innovation is also the development history of the entire financial industry

From the emergence of currency to the emergence of commercial banks, from the first From the listing of stocks to the current securities market that everyone is familiar with, every major revolution in the financial industry contains innovative concepts and should be included in this category. However, in order to have more reference to reality

$, we still start from the generally accepted end of the 19th century as the starting point for studying the time span

, and according to the emergencies that occurred nature and intensity, it is divided into the following stages: The first stage

Page: from the end of the 1990s to the end of the 1990s (& p>There are: foreign currency swaps, Eurobond market, Eurodollar market, syndicated loans, parallel loans

Convertible bonds, automatic transfers, redeemable bonds, negotiable certificates of deposit, liability management< /p>

Management, mixed accounts, sales of accounts receivable, second stage: %& century)& s, financial innovations during this period include: floating rate notes, special drawing rights (*+,), Federal Residential Mortgages

Loans, Securities Dealers Automatic Quotation System, Foreign Exchange Futures, Negotiable Payment Order Account

(-#!), Money Market Mutual Funds (.../), forward foreign exchange transactions, floating rate bonds

bonds, subsidized government bonds, interest rate futures, smart cards, Treasury bond futures, money market deposit accounts

automatic Transfer services, European Monetary System. During this period, the disintegration of the Bretton Woods system, the dispute between Keynesianism and monetarism, and the integration trend of the world economy made the international financial situation extremely complex and changeable. : The exchange rate is out of control,

interest rates are soaring, and the extremely unstable inflation rate, all of which put the operations of domestic and foreign financial institutions

face huge risks. At the same time, The degree of financial regulation in various countries is still very high. How to better avoid the risks of interest rates, exchange rates, and general accounts under existing financial controls is the theme of financial innovation in this period. The third stage: From the 1990s to the end of the 1990s, financial innovations in this stage include: debt guaranteed bonds, currency swaps, zero-coupon bonds, and interest rate swaps. Exchange, bill issuance facility, Treasury bond futures options, stock index futures

Currencies, currency options, adjustable preferred shares, the establishment of the London International Financial Futures Exchange,

collateralized debt, Standard & Poor's Index futures, forward interest rate agreements, European currency futures options, automatic withdrawal certificates, loss-free bonds, loss-free warrants, bridge loan notes, index time deposits, and stocks Flexible options, Hang Seng Index options, etc. Financial innovation in the 1980s and 1990s was the most glorious period in the history of innovation, such as the four major inventions of off-balance sheet business, the emergence of financial derivatives, etc. Although financial innovation is still passing on interest rate, exchange rate and credit risks, these tools are more flexible and convenient than in the previous stage, and the types of innovation are more diverse. Diversification, in addition to innovations that transfer risks, also creates credit and generates equity

Innovations, and the scale of the innovation market is rapidly expanding, benefiting from this prosperous situation

During this stage of financial liberalization, countries are competing to relax financial controls, and innovation in financial instruments is more focused on the connection between capital markets, insurance markets and traditional financial intermediaries

superior.

2. The economic mechanism of generating innovation

The above gives a very detailed introduction to the history of financial innovation, and introduces the emergence of each type of financial innovation

Motives, we can see that in financial innovation in different historical periods

, some different factors play a role in each historical period. In order to better grasp the financial innovation

Regarding the generation mechanism of innovation, we plan to analyze the macro and micro factors that produce financial innovation from the perspective of the subject, and grasp more revolutionary things in different historical stages.

!Macro

Changes in the economic environment are the most suitable soil for the birth of "new species". First of all, circumventing financial controls

is the cause of financial innovation. We all know that financial intermediaries are born within economic development. From the perspective of new economics, they arise because they can reduce transaction costs. When financial controls impose When the operating status and objectives of financial institutions bring extremely adverse effects

, financial institutions will find ways to bypass the controls through reasonable and legal innovative activities. When such innovative activities When the income is greater than its opportunity cost, a financial innovation comes into being; secondly, the development of financial liberalization and globalization has brought great changes to traditional financial institutions. Here comes a new competitive landscape. With the development of the economy and the development of the financial market to a certain extent, the potential savings resources of the entire society have been exhausted. At this time, the savings resources are in the traditional financial intermediaries. between intermediaries, other non-bank financial institutions and financial markets. The intermediaries and financial markets have a substitution effect rather than a complementary effect.

This has resulted in the phenomenon of financial "disintermediation", that is, A large amount of funds flowed from regulated financial intermediaries to direct financing markets, forcing the financial system to produce two types of innovations to adapt to financial liberalization and global financial integration. New situation: One type is the innovation of new financial instruments; the other type is the birth of new financial institutions, such as venture capital institutions, investment banking institutions, etc. Finally, the promotion and development of computers and information technology in the financial field provide necessary technical conditions for financial innovation. The widespread use of information technology

especially the rapid development of e-commerce in recent years has accelerated the processing of financial information and reduced transaction costs, further accelerating the business innovation of financial institutions. speed. !Financial

Micro-level motivations for financial innovation. From the perspective of the history of financial innovation, micro-financial institutions have always been the main body of financial innovation. As a kind of operating institution, the purpose of any business activities

is In order to pursue profits, financial innovation activities are no exception. They need to avoid risks, occupy the market, reduce costs, meet market demand, and take the lead in the increasingly fierce competition.

Opportunities, etc. In the final analysis, various opinions cannot escape the word "profit", but the fierce competition

and the stimulation of market demand can induce the internal motivation of financial institutions to innovate to the greatest extent

, thus affecting the activity of financial innovation in a certain period. We can see that the 1980s and 1990s were a glorious season for financial innovation, and many new financial innovations emerged.

Tools, Business and Financial Institutions. Therefore, financial innovation in the West mainly comes from the internal motivation of its micro-financial institutions. Its innovation is characterized by "bottom-up" and is mostly based on tool innovation and institutional innovation. Focus on innovation. The above analysis of the economic mechanism of financial innovation will help us master the research methods of financial innovation. On this issue, theorists generally believe that there are two research methods: one is the "demand following type"! It emphasizes the demand side of financial services, and then With the growth or development of the economy, economic entities will have demand for financial services. In response to this demand, the financial system will continue to innovate. In other words, the demand for financial services by economic entities has led to the creation of financial institutions,

financial assets and liabilities and related financial innovations; the other is "supply leadership"!

It emphasizes that financial institutions, as suppliers of financial innovation, can proactively precede demand in the supply of innovation. But the latter method has been greatly ignored. In fact, the two methods should be combined. At the same time, we should also see the existence between the demand following type and the supply leading type. poses an optimal order problem. Looking at the history of financial development and thinking about the deep reasons behind financial innovation, we can see that in the early stages of economic development, the leading supplier occupies a dominant position; With the development of the economy and the gradual activation of economic factors, the demand-following type gradually takes the dominant position. The determination of this idea is extremely instructive for my country's financial innovation.

3. Inspiration for financial innovation in my country’s banking industry

It has only been in the past twenty years that financial institutions have gradually resumed their financial functions. Due to

my country’s special Against the background of economic system reform, my country's financial innovation in recent years has shown the following characteristics: "Financial innovation is mainly institutional innovation, such as credit management of financial institutions." System changes - four stages, finally implemented in "asset-liability ratio management

"; the few tool innovations are mainly deposit tool innovations, and asset tool innovations

There are fewer innovations, and this phenomenon has deep-seated institutional factors! There are fewer original innovations and more absorbing ones. Since the reform and opening up, my country's innovative financial instruments have been "#. $

The innovation is "brought", while innovation is more "from top to bottom" - from the People's Bank of China to commercial banks in the form of

download documents Then to each branch or from the head office to the lower-level banks, it is rarely from bottom to top. This feature is related to my country's backward economic and financial development level, small independence of financial institutions and relatively strict financial controls. are consistent. #In terms of the generation mechanism of financial innovation

, it is very different from that in the West. The main source of motivation for financial innovation

is the promotion of external forces of institutional reform, and the internal power of financial institutions. There is not enough innovative impulse.

It should be said that in the initial stage, the effect of this externally initiated financial innovation was very obvious.

Innovations in financial systems, financial markets, financial instruments, etc. made the financial system in the shortest time< /p>

It was perfected within a period of time, which has effectively cooperated with and supported the reform of the economic system. However, with the development of my country's socialist market economy, the depth and breadth of the role of finance will be further improved, and there will be new requirements for the scope and quality of financial services. , the demand for financial innovation will increase, and the disadvantages of the original financial innovation's inefficiency, lack of systematicness and standardization will gradually emerge, so that the development of the financial system will The lag has become a bottleneck restricting economic development.

What is the future development trend of my country’s financial innovation?

What kind of thinking should be followed to not only adapt to the national conditions but also cope with the new situation

after joining %&’? Through the analysis of Western financial innovation, a basic idea like this can be determined here: "Our country is still in the primary stage of economic development, and the functions of microeconomic individuals It is not yet complete and the demand is not strong. Financial innovation of financial institutions should

follow the "supply leading" rather than passively "demand following". This is the optimal order

The choice determines the logic of my country's financial innovation process! With the ordering of competition

and the improvement of the financial regulatory system, it is necessary to activate the innovation power of micro-financial institutions and restore

As the main body of innovation, financial institutions should abandon the strict control that makes financial institutions into rigidity.

When banks' operating standards are improved to the point where they can truly take responsibility for their own profits and losses and self-discipline, they will gradually break through.

Separate operations and realize mixed operations should ideally be implemented within five years to enhance the competitiveness of my country's financial institutions after joining the WTO #increase the technological content of financial innovation

Quantity, under the premise of gradual relaxation of controls and increasingly perfect supervision, financial innovation can best

be "bottom-up" and oriented to market demand, which is conducive to improving the efficiency of financial innovation; $because

With the rapid development of the direct financing market, my country’s financial intermediaries are about to face the phenomenon of financial disintermediation. Therefore, the innovation of financial institutions and financial instruments must focus on the capital market

p>

To develop a broader living space and find new profit growth points

At the beginning of the () century, looking to the future, it is foreseeable that my country's financial innovation will have great

In view of the development space, the upcoming financial innovations include: First, the launch of various forms of bonds, such as floating rate bonds, guaranteed interest rate bonds, callable bonds, and Convert bonds, etc.;

The second is to establish various forms of funds, such as open-end funds, various investment funds, etc.; The third is to carry out various types of futures, options, and swaps. Businesses, such as stock options, interest rate swaps, stock index futures, foreign exchange futures, etc.; fourth, banks should launch new service forms, such as design and stock market, Financial instruments (loan securitization) connected to the insurance market, and participation in investment banking business is the general trend; fifth, new financial institutions such as venture capital institutions

There will be endless ones. I believe that with careful design and careful supervision based on fully absorbing the financial innovation experience of developed countries, our country's financial innovation will develop rapidly.