Research on the Homogeneity of Commercial Banks

With the joint-stock reform, the rapid development of China’s commercial banks, assets, and liabilities, have been expanding rapidly and thus improve the profitability, and competitiveness, making a significant contribution for the social and economic development. However, the rapid development of commercial banks in the simultaneous homogenization comes up with the more obvious problems. With the deepening of financial sector openness, the realization of market-oriented interest rates, a higher degree of homogeneity affects the improvement of the entire commercial banking system, while not conducive to commercial banks to participate in international competition and their own sustainable development. Thus how to solve China’s commercial banks’homogenization problem becomes a serious issue that we need to carefully study and explore currently.This paper first theoretically pointed out that the basis of the judgment for homogenization of commercial banks and that the establishment of the relevant measure. On this basis, the article focus on state-owned banks, joint-stock banks and city commercial banks with a sample of16listed banks and according to its financial statements from the income structure, liability structure, asset structure and three homogenization issues, the article makes the descriptive statistical analysis. The study found that China’s commercial banks have a more serious problem of homogenization. Then, the article elaborate the performance of homogenization of major commercial banks and further analyzed the mainly reason for the high degree of homogenization. The main reasons are:deposit and loan interest rate is too large, lack of innovative capacity, and regulatory policy implications. Finally, integrating with the foreign banks’differentiation cases, the article points out the how Chinese commercial banks should make differentiation strategy. Also the article put forward recommendations according to the differentiation of the market customers, the differentiation of the products and services and the differentiation of the brand.