The Research On Homogeneity Of Financial Products Of Chinese Commercial Banks

As a new attempt to innovative financial products and services, financial products inject new vitality to China's financial industry and give investors a new investment products. But the issue number of financial products is growing rapidly, this easily leads to homogeneity problems. Therefore, In this paper, hoping to study the homogeneity of financial products can help to defuse the homogeneity of bank risk, and improve overall competitiveness, we research homogeneity of financial products from the perspective of products and banks, and put forward specific suggestions.This paper elaborates the related theories, and analyze the current situation of financial products issued by banks firstly from six respects:mode of operation, the risk level, duration type, the type of issuer, investment asset allocation, investment principal distribution and so on. From the perspective of the banks, by selecting seven indicators study and design homogeneity index. On this basis, evaluate the homogeneity of financial products.Selected data come from China wealth.com.These seven indicators are:income type, operation mode, period type, currency, risk level, from the sale amount and the highest rate of return expected. Make cluster analysis based on the value of homogeneity evaluation of each bank, the banks are divided into high,medium and low categories, according to the homogeneity of financial products. And draw conclusions:The homogeneity of financial products issued by China's commercial banks is high and higher than foreign banks. Starting from the perspective of the product, this paper research trends changing on homogeneity of financial products by selecting six indicators, and draw conclusions:The homogeneity of financial products issued by China's commercial banks shows a downward trend in the overall. These six indicators are:mode of operation, the risk level, duration type, the type of issuer, investment asset allocation, investment principal distribution and so on. From the homogeneity changing of the various elements in terms of financial products:the homogeneity of investment asset allocation and issuer types decline slightly, but the decrease is not obvious; homogeneity on distribution of investment fell by 2%; Only the homogeneity of risk level increases, and the increase is more obvious, showed by35.59%.The main causes of the decline on homogeneity of financial products lies in the following two aspects:The fist aspect reflected in the operating mode, fund raising volume of open net financial products increased 1.7 times in 2014, leading to the homogeneity index on mode of operation fell nearly 0.2 compared to 2013, the decline of about 27.08%; The second aspect reflected in the elongating of period of financial products, the average commission of closed-end products in 2014 is longer than 2013 by extending seven days, the share of issue number of short-term financial products, refers to not more than three months, declined from 61% in 2013 to 58%, leading to the homogeneity index of period type fell about 5.68%. Corresponding to the results of this study, to mitigate the risk of homogeneity financial products issued by China's commercial banks, proposed recommendations are as followed:(1) to use multi-standard to classify clients; (2) to make customer needs as the center, issue different financial products; (3) to learn from the experience of foreign banks, enhance independent innovation capability; (4) to develop high-quality core financial management and marketing personnel; (5) to create and maintain a personalized brand; (6) to implement flexible regulation, and to establish bank patent protection system.The innovation of this paper is to evaluate the homogeneity of financial products, both from the perspective of the product and the bank. And make cluster analysis based on the homogeneity of the bank issuing financial products, the banks are divided into high, medium and low categories. From the perspective of the bank, noting the homogeneity of financial products issued by China's commercial banks is high and higher than foreign banks. From the perspective of product, founding that the homogeneity of financial products of China's commercial banks shows a downward trend in the overall, and pointed out that the main reasons are that the homogeneity of operating mode and duration of type declined.