Research On Banking Structure In China From The Perspective Of Financial Inclusion

To develop during the period of 13^th Five-Year Plan,it becomes important to solve the problem of inappropriate economic structure in China.Correspondingly,it also becomes important to adjust the banking structure,meeting the demand of economic structure change.This dissertation argues that the adjustment of banking structure should be guided by financial inclusion,which means changing the structure at multiple levels in the banking system to serve the needs of disadvantaged fields and improve their economic status.Therefore,this dissertation is focused on how to adjust the banking structure,fulfilling economic development from the perspective of financial inclusion,as the following parts.First,it theoretically clarifies the relationship between banking structure and financial inclusion,establishes the micro-performance and macro-performance bases for banking structure optimizing,and models the mechanism for it.On the relationship between banking structure and financial inclusion,it points out that they are linked with market or non-market mechanism based on the SCP framework.On the judgement bases from the perspective of financial inclusion,the micro-performance requires maximizing the profits of both banks and firms;in addition,the macro-performance requires promoting the economic development of disadvantaged fields,advantaged fields and the total economy.On the theoretical model with conditions of the micro and macro performances,the model of banking structure optimizing mechanism is discussed under the situations of absolute division and homogeneous competition between exclusive and inclusive banking sectors.It also concludes the general impacts of banking structure change on the economic development in each field,providing a theoretical foundation for the empirical studies.Second,it measures the market structure index,the spatial structure index and the credit structure index using statistical methods,and analyzes the current status and problems of Chinese banking structure from the perspective of financial inclusion.The main problems include relatively high market concentration with large gap of the market share among banks in different sizes,unbalanced spatial structure with homogeneous geographic distribution among banks in different types,and unbalanced credit structure with concentrated credit allocated in advantaged fields.According to those problems,the econometrics analyses are conducted in three parts,which include empirically testing the impact of banking market structure on the overall economy and three industries,empirically testing the impact of banking spatial structure on regional economies,and empirically tests the factors at all levels which influence the structure of banking credit allocated on industries.On the empirically methodology,it considers endogenous problems in the models caused by the two-way relationship between finance and economy,and the methods of time series 2SLS,panel data system GMM,fixed effect and random effect are chosen accordingly.The main results conclude from the empirical tests are:on market structure,the large,medium and small banks do not significantly influence the inclusive development of the real economy,and the net outflow of small banks through the interbank market has negative effect on the growth of the disadvantaged industry;on spatial structure,policy banks,rural financial institutions,commercial city banks and the postal savings bank are more inclusive in the disadvantaged regions;on credit structure,cross-region banks are more inclusive than regional banks in supporting the emerging industries with higher growth rate;and so on.Finally,based on the theoretical analysis,the empirical results and the international experiences,the basic idea and the relevant suggestions of optimizing the banking structure in China are put forward.On the international experiences,it summarizes the changing history of banking structure in different countries after World War II,the development experiences of the inclusive banks and the new challenges facing by the banking industry currently.On the basic idea,it analyzes the function of market and government with market mechanism,incentive policy mechanism and regulation mechanism in optimizing banking structure.On policy suggestions,it proposes that the banking structure should meet the financial demand of disadvantaged fields,explore the differentiated business modes of banking industry and carry out prudential regulations on classified banking sectors.In this dissertation,the study on banking structure highlights the perspective of financial inclusion.The innovative and major contributions are:it analyzes the linkage between banking structure and financial inclusion through the SCP framework with external market and non-market mechanism;it judges the optimizing process of banking structure from the perspective of financial inclusion with the bases of micro and macro performances,and systematically establishes a theoretical model consisted of exclusive banking sectors,inclusive banking sectors,advantaged economic fields and disadvantaged economic fields;it measures the structure index to investigate the current situation of Chinese banking structure and analyze its problem from the perspective of financial inclusion,and then it tests the impact of market structure on economic growth,the impact of spatial structure on regional economy and the macro and micro factors influencing credit structure;in addition,it puts forward the optimizing idea of cooperating market and government power,and proposes suggestions on matching the banking supply and demand,differentiating the banking business mode and implementing the banking classified regulations.