The Scale Economy Empiral Analysis Of The Commercial Banks In China

The openness of our country went into a new stage after joining into the WTO,and the financial industry in our country face the challenge which has not been met before,espicially the competition between the banks in our country and the foreign banks. Finance is the core part of the economy,and the commercial banks is the important part of the financial market.Improving the commercial banks' commpetition is essential for the sustainable development of the financial industry facing the foreign banks' entry into the domestic financial market.Efficiency is the main indication of the competition,and improving the efficiency can keep away the financial risk and promote the sustainable development.With the loosening of the banking regulation and the emerging of the phone-banks and the net-banks,the competition becomes more and more fierce.The efficiency strenth is the essencial of the competition,but ,the commercial bans, especially the state-owned banks, put much attention on the market ratio,ignoring the efficiency. So, the research on the commercial banks' scale economy is active for the long-term development of the banks.First,starting from the general theory of the scale economy,this paper set forth the meaning of the scale economy, and analyses the factors which affect the banks' scale economy and the domino-offects of the scale economy. Second, from the situation of the commercial banks in our country,it analyses the market structure by using the CRn index and the HHI index, and it indicates that the four state-owned commercial banks have absolutely preponderance in the capital, deposit and the market share.Then,taking the related data (from 1998 to 2003)of the share commercial banks, this paper makes an empirical analysis on the scale economy of the share commercial banks by using the ammended translog cost function,it shows that the share commercial banks do have scale economies.At last,according to the studying results and the financial environment, this paper puts forward the suggestion on how to improve the scale economy of the banks in our country,such as quickening the property reform, impelling the incorporation and set up the efficial market structure etc.By taking the studying method of combining the qualitative analysis and the quantitative analysis,this paper studies the scale economies of the banks in our country,and makes the empiral analysis on the scale economies of the share commercial banks by using the quantitative method.It has important significance for the banks to expanding the scale and improving the operating performance.