Study On The Market Structure And Efficiency Of Banking In China Under The Background Of Economic Opening-up

Finance, especially the Banking, is the core of our country's economy, and the healthy development of the Banking directly relates to the development of our country. According to the agreements we signed when China entered WTO, we must completely open the financial servicing business by December 11th, 2006. At that time, the foreign banks will flow quickly into the financial market in our country.In chronological order of the development of our commercial bank, this paper firstly divide the developing period of banking into three different phases, which are monopolization, oligarch, complete competition, and systemically analyses the changing process of the market structure and the efficiency of the Banking in our country by proof study using Panzar-Rosse and DEA.Next, this paper studies on the development situation of banking. On the basis of that, this paper gives out a further research on the condition of banking market structure and the efficiency after China entered WTO. Besides, it makes a proof-test about the relation of market structure and efficiency and turns out that while the foreign bank swarming into China, our banking efficiency would be better but the concentration degree would be lower and lower.Then, it forecasts the market structure of banking which may appear in the future, that is, Cartel model; Sweezy model; Low-cost company decision model. As the opening-up going on, the first two modle would be collapse gradually. However, the Low-cost company decision model most likely to be our banking market structure in a long run.At last, this paper puts forward some suggestions for the development of our Banking. For example, Chinese banking should raise own competition power, speed up institutional revolution, set up the rational distributive system. Put emphasis on combination among banks, using the International Regulations in ration, so as to protect Chinese banking.