As one of the three modules of the financial industry, the banking industry has a wide impact, and a special and important position in the entire financial system and the national economy. In the context of the turbulent international financial situation and the rapid changes in financial technology, China’s banking industry is facing challenges in various aspects. Chinese commercial banks need to accelerate the pace of innovation within the appropriate regulatory scope to improve their core competitiveness. This study investigates the impact of financial innovation and financial supervision on commercial banks’ business performance. We use panel data on 40 listed commercial banks in China during 2011-2020 and utilize a regression model. The findings show that both financial innovation and financial supervision have a positive impact on commercial banks’ commercial performance. Furthermore, strengthening financial supervision has a facilitating effect on financial innovation to improve bank performance.