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Research On The Relationship Between Banking Market Structure And Financial Stability At Regional Level In China

Posted on:2017-04-06Degree:DoctorType:Dissertation
Country:ChinaCandidate:L FanFull Text:PDF
GTID:1109330482497301Subject:Finance
Abstract/Summary:PDF Full Text Request
The banking industry is dominant in China’s financial system, the banking market structure is not only related to the efficiency of the banking industry, but also affect the stability of the financial system, thereby affecting economic growth. Since thel980s, China has been vigorously advancing the banking reform, reducing the barriers to entry the banking industry, supporting the developmentof small and medium sized banks, improving the competition of the banking industry, reducing the banking market concentration, improving the corporate governance and internal control of the banking sector. In the current new normal economic background, the macroeconomic growth slow-down and the interest rate liberalization have new impact to the development of Chinese banking industry stability.That does not occur regional riskor systemic risk accident is a major issue of concern.This article traces the impact thatthe regional banking market structure changes have on the financial stability.And we try to find how to further promote the reform of banking system, improve the efficiency of banking business, provide effective financial support for economic development under the premise of maintaining financial stability. Because China’s regional economic and financial development are different, the development of banking market and regional financial stability is also different.And there is little research basis on the regional level. Therefore.this paper studies the relationship between the market structure and financial stability of China’s banking industry from the regional level, in order to contribute to the evaluation of the effect of banking reform and the prevention of systemic regional financial risks.Except the preface, this paper has five chapters. The second chapter elaborates the related theories of banking market structure and financial stability. Following the structure-Conduct-performance framework combing bank industry market structure theory, the paper describes the financial stability theory and system important banks influence mechanism on financial stability, chooses the regional systemically important bank as a breakthrough in regional financial stability analysis, making the basis for the following empirical analysis The third chapter elaborates the influence mechanism of banking market structure on financial stability. This article from two aspects of risk transfer, information asymmetry channels sorts out the mechanism that the banking market structure on the financial stability When considering the risk transfer factors, the higher the concentration of the banking market, the stronger the impact on financial stability. And when considering the information factors, the banking market concentration is higher, the bank information advantageis higher, useing their information advantage to monitor the borrowers, maintaining its (?)bility; but dominant position information can also induce banks produce moral hazard, undermining financial stability. The fourth chapter respectively analyze the fact on the Chinese bank industry market structure and stability finding the banking reform and financial deepening process greatly promote the development of banking market. With the decline in the concentration of the banking market, the overall risk situation has been improved And the economic growth has been promoted, but also to maintain financial stability. In the fifth chapter,we usethe panel regression empirical assessment of China’s regional banking market structure influence on financial stability. Firstly, this paper distinguishes the regionalsystemically important bankand choose their Z index as the variable region of a proxy for financial stability, selecting regional banking market concentration degree and other robust variables as independent variables to assess the regional banking market structure influence on the financial stability of the. The study finds that the overall level of China’s banking market concentration is negatively correlated with the financial stability, which verifies the hypothesis of more concentration-financial instability. But the measurement results of some provinces are different, the banking market concentration of Gansu, Qinghai, Ningxia, Guizhou is high, the financial stability is weaker. There are the conclusion and suggestion in Chapter 6.The conclusion is that the regional bank Chinese industry market structure and regional financial stability generally shows a negative elationship, but in some underdeveloped provinces, the relationship between the two is positive. Therefore, for the development of policy banks we should consider the industry market structure and financial stability features in different provinces. Generally we should continue to push forward financial reform and release of the vitality of the banking system, and in some provinces we should take measures according to local conditions, appropriate to enhance the local banking market concentration degree, and under the premise of maintaining financial stability, we should play the role of banking industry with the economic growth.
Keywords/Search Tags:Banking Market Structure, Financial Stability Systemically Important Bank, Concentration of the Banking Industry
PDF Full Text Request
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