Analysis of International Financial Innovation Bases on the Network and Information Times

摘要

The emergence and popularization of electronic computer has laid a solid foundation for modern financial industry moving towards the network times. Electronic information technology accelerates the flow and liberalization of information, which enables financial institutions like the bank quickly access to enter real-time condition by the information dissemination and financial transactions. The emergence and development of the Internet has already brought many financial service innovations through using the Internet. Therefore, the finance in the 21st century will be network-based, electronic, virtual, globally integrated. However, we must also acknowledge that the innovation was shaped by new technologies (both intellectual advancements and systems capabilities), was a response to tax and regulatory factors, and was driven by the presence of information asymmetries and transaction costs that made trading costly. Thus, this one innovation was the result of virtually every explanation advanced above. Financial institution will face various risks from the international financial innovation at the Network information age. Therefore, the paper puts forward avoidances to risks from the international financial innovation at the information network times; we should cope with the relationship between the financial innovation and financial supervision, strengthen the supervision of the financial risks and implement the financial innovation continuously in a reasonable degree.