CBRC: Encourage financial institutions to innovate around economic themes

Cai, vice chairman of China Banking Regulatory Commission, 19th at the 12th Beijing Branch Expo 2009 China Financial Summit, said that under the current economic situation, the CBRC encourages banking institutions to carry out beneficial innovation around economic themes to better serve the macro economy. Cai-Sheng pointed out that financial innovation is the inevitable path for the financial industry to survive and develop.　　However, the financial crisis once again warned us that financial innovation is a double-edged sword, the benefits and risks coexist. At the same time, the crisis also gives China's banking, financial institutions in the financial innovation practice has provided an important inspiration: first, the fundamental starting point of financial innovation is to serve the real economy, must be based on the effective demand to meet the market; second, financial innovation needs to match the development level of financial market,　　Adapt to the cognitive level and risk management ability of market participants; Thirdly, the promotion and development of financial innovation should be subordinated to the long-term interests of investors. With the development of market mechanism in China, the financial innovation activities of banking industry in our country have been carefully promoted.　　However, Cai-Sheng pointed out that China's banking industry is still in the stage of reform and development, compared with the commercial banks of mature financial market countries, facing many different problems, in many different areas there are still innovation, or even innovative blank. For example, banking financial institutions also need to systematically study their own innovation positioning and focus, continuously improve the financial innovation supporting system and rigorous innovation process, reduce the occasional type of innovation; the convergence of financial institutions is obvious; Financial institutions are necessary to study the risk control mechanism of financial innovation; financial institutions to carry out financial innovation activities　　, it is necessary to devote more effort to the duty of public education. Therefore, Cai stressed that the banking financial institutions should strengthen the research and understanding of the national strategy and policy, clarify the development strategy in the economic field, strengthen the financial innovation in line with the national economic policy, such as rural finance, small business credit, and improve the quality and level of financial support.　　The areas of national industrial policy phase-out and compression should be carefully adjusted and strategically withdrawn according to risk conditions. In addition, banking institutions should continuously improve their risk management capabilities for financial innovation activities and balance short-and long-term benefits. Meanwhile, investors ' education should be strengthened to enhance the cognitive ability of financial consumers for innovative products.