Abstract
The outbreak of the sub prime mortgage crisis sounded the alarm for the risk control of Chinese commercial banks ‘financial product innovation. Financial innovation has made outstanding contributions to enhance the competitiveness of commercial banks, but it also increased the difficulty of commercial banks’ risk prevention. Product innovation is an important means to enhance core competitiveness for commercial banks,which gets ever - increasing attentions of commercial banks and academics. However,in the face of intense competition,china's commercial banks are not only restricted by institutional and social environments,but also take on some problems obviously as followed: Homogenization of product innovation,slow innovation,little integration.
Based on the summary of financial innovation and risk characteristics of financial product innovation, the financial product innovation chain analyzed, and some suggestions to enhance the risk prevention capacity put forward, including the establishment of corporate strategy, management, mechanism, system innovation and product design, the four - dimensional system of risk management is necessary to Chinese commercial banks.
【Keywords】 Commercial bank, Financial product innovation, Sub prime mortgage crisis, Risk prevention