A Study on the Synergistic Effect of Commercial Bank Business Innovations

After subprime crisis, researchers are turning to study the business innovations of China´s financial banks. And in the paper, we discuss the synergistic effect of business innovations. Firstly, we discuss the definition of synergistic effect. Then we present the functions to test the synergistic effect of financial bank business innovations. Lastly, we use the data of thirteen financial banks to test the effect of economy of scope. With the test, we find that there exists synergistic effect, such as economy of scope and economy of scale in financial bank business innovations. With the synergistic effect of old business and new business, financial banks can acquire more rewards and reduce the costs.