Dissertation > Excellent graduate degree dissertation topics show

Empirical Research on the Influence of Financial Innovation on Risk of Commercial Bank in China

Author: YuanLi
Tutor: SunZuoLin
School: Huazhong University of Science and Technology
Course: Financial
Keywords: Panel data Financial product innovation Risk Off-balance sheet business
CLC: F832.33
Type: Master's thesis
Year: 2013
Downloads: 27
Quote: 0
Read: Download Dissertation


The wave of financial product innovation has swept across China since the21stcentury. The business pattern of domestic commercial banks has changed from thetraditional pattern to the modern pattern which includes assets, liabilities, and externalbusiness. Many commercial banks launches kinds of innovation products to be morecompetitive in the market.Financial innovation has two sides. It has the function to prevent risk and also has theprobability to create new risk. Even though most commercial banks have built a vast andcomplex risk control system, but the new risks come from innovation need newrisk-management techniques just like the new network virus needs more advancedtechnology to control. When we introduce the technology of how to create new financialproduct, do we also introduce the technology of how to control the new risk related to thenew product? So far none of us knows.In the theoretical part, the paper defines the concept of financial product innovationfrom the theory and practice. In the same time, with the help of the beta of CAPM model,the paper measures the investment risk of commercial bank and uses it to measure thebank’s overall risk. Then, the paper analyses the cause of the risk created by productinnovation basing on the theories of principle-agent, financial intermediation theory andso on. In the same time, I try to expound the hypothesis of the paper: financial productinnovation of commercial banks increased the overall risk of the bank.In the empirical part, the paper choose the degree of product innovation inintermediate business and degree of financial product innovation as the indicator ofbank’s financial products innovation, and a panel data of the sample from2007to2011isused to do a regression analysis. The regression results verify the theoretic conclusionconsistently: there is a significant positive correlation between the degree of commercial bank’s financial products innovation and the bank’s risk. On this basis, I put forward myview that the product innovation of domestic commercial banks is still in an infantile stage,the ability of risk pricing and risk control in the process of innovation is still inadequate.In conclusion part, this paper puts forward some suggestions to domestic commercialbank and the CBRC: you should pay more attention to the potential risk behind thefinancial innovation, specifically, when learning the product innovation you should befocus on how to control the new risk, or the wave of innovation will bring in too manyunstable factors to Chinese financial market.

Related Dissertations

  1. Research and Analysis of Postcholecystectomy Diarrhoea (PCD) in Chronic Calculous Cholecystitis,R657.4
  2. Research on Dam-Break Probability Analysis Method for Dangerous Reservoir,TV697
  3. Key Technologies of Dam-break Life Loss Risk Assessment Research,TV122.4
  4. The Studies and Establishment of Ready-mixed Concrete Information-guided Price on the Basis of Risk Analysis,F407.92
  5. Study on Development Risk Analysis and Management of Urban Commercial Residence,F293.35
  6. Financing Behaviors of Sina Microblogging in View of Risks,F49
  7. The Study on Risk Evaluation of BOT Projects in China University,G647
  8. Health Risk Assessment of a Brownfield Contaminated by Volatile Chlorinated Hydrocarbons and Study on Screening of Remediation Technique,X820.4
  9. Research on the Regional Difference and Influence Factors of China’s Carbon Emissions,X502
  10. Health-based and Ecological Risk Assessment of Contaminated Sites,X820.4
  11. Assessment of Resistance Risk in Spodoptera Exigua (Hubner) and Spodoptera Litura (Lepidoptera: Noctuidae) to Chlorantraniliprole,S433
  12. Innovative biopharmaceutical companies a significant risk of dynamic analysis of continuous innovation and response measures,F273.1
  13. Open pit production accidents studied because of the risk management measures,TD771
  14. Research on Index System of Marketing Risks in Apparel Enterprises,F426.86
  15. Study on the Management Strategy of University’s Brand,G647
  16. A Smoothing Method for Solving Model under WCVarR,O224
  17. Distribution and Bioavaiability of Polycyclic Aromatic Hydrocarbons in Soil Particle-size Separates,X131.3
  18. The Empirical Research of the Important Factors of the Financial Risks of Chinese A-share Construction Enterprises Market,F426.92
  19. Drought Risk Analysis of Dazhen Irrigated Area,S423
  20. Monitoring of Insecticide Resistance, Resistance Risk Assessment and Biochemical Mechanism for Buprofezin in Nilaparvata Lugens(St(?)l),S435.112.3
  21. Insceticide Screening and Resistance Risk Assessment for Thiamethoxam in Western Flower Thrips, Frankliniella Occidentalis,S433

CLC: > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Financial organizations, banks > Commercial banks ( specialized banks )
© 2012 www.DissertationTopic.Net  Mobile