Author(s)

Changbo Zou

Corresponding Author

Changbo Zou

Abstract

An analysis on the influences of financial innovations in China’s commercial banks on the risks of banks. This paper conducted quantitative analysis with the panel data of 27 commercial banks in China, and the study shows that: first, the financial innovations depicted with the proportion of the non-interest income of commercial banks has a positive effect on financial risks, and the empirical results remain stable after the item of lag of financial risks is introduced; second, improving the deposit-to-loan ratio, the profitability, the asset-liability ratio and the asset size of commercial banks help to reduce the operational risks of commercial banks; third, the return on assets and the growth rate of net profit of commercial banks are positively correlated with financial risks.

Keywords

Commercial Banks; Financial innovations; Bank Risks;