Industrail Analysis On Banks In China

With the deepening financial reform, Chinese financial industry has established an important position in national economy. Meanwhile, banking, as the core of financial industry, played a crucial role in Chinese economical development. Since 1985, a fruitful progress which included completion of four major state-owned banks'joint-stock transformation and establishment of joint-stock commercial bank has been made by Chinese Banking industry. The achievement mentioned above realized Chinese banking industry's competition degree to enhance gradually, and broken monopoly pattern in planned economy. But at the same time, Chinese banking industry was also facing many problems, such as low efficiency, resource inefficient allocation, etc. In addition, after China joined the World Trade Organization, the domestic banking industry market was comprehensive opening to the outside world; many foreign banks entered this market rapidly. With those problems, Chinese banking industry would be faced more intense competition. Therefore, how to effectively use industrial organization policies to improve China's banking industry's performance level and competitive power level was a feasible question suspended in front of us.In this paper, starting from present situation of Chinese banking industry development, both basic theory and research methods of industrial economics was utilized to analyze banking industry's market structure, market conduct and the market performance, and then proposed the practical effective industrial policy to Chinese banking.Six partial contents were composed of the paper. In the first part, the background and significance of selected topic were elaborated, the research results of domestic and foreign scholars in banking industry based on industrial organization theory were summarized, and the research route of the paper was proposed. In the second part, banking industry which included of its characteristic and the development process was introduced; industrial organization theory included of its origin and the SCP model was discussed. In the third part, focused on the concentration degree, the product differences and the admittance barrier, market structure of Chinese banking was analyzed. The results of analysis indicated that Chinese banking was at an oligopoly stage at present. In the fourth part, the market conduct of Chinese banking was researched, which contained price behavior and non-price behavior two parts. In the fifth part, banking market performance was researched by perspective of Profitability index, cost index and resource allocation index, and the relationship between market structure, market conduct and market performance was discussed. In the sixth part a practical suggestion was proposed, which purpose was to raise Chinese banking market achievement level, and promoted competitive power level.