Financial Innovation and Financial Risk

Abstract

The market economy has made new progress and development, and the development of the financial industry has gradually become internationalized. To occupy an important position in the fierce competition of the financial market and win more voice, Reform, and innovation are the development direction of financial enterprises in the future Financial innovation is a continuous reform of the financial system and its connotation, with innovations in financial technology and institutional innovation. Innovation represents a break from the norm, a change in the previous mode of financial supervision, the scope of financial activities, and the structure of financial products, but this inevitably. Although Financial innovation can eliminate some of the hidden financial risks, financial risks have not completely disappeared, so financial innovation is not omnipotent and still has great limitations. This article analyses the relationship between financial innovation and financial risk, as well as the characteristics of financial innovation, and provides feasible suggestions from various perspectives.