Research On Market Structrue And Performance Of China's Banking Industry

As an important industrial sector, the stability and prosperity of banking industry has a direct impact on the development of the whole national economy. Due to the particularity on the process of form and development of China's banking industry, there are still lots of problems. Facing the challenge brought by the entrance of WTO and by both the internal and external opening of China's banking industry, it's necessary to explore he market structure and performance of this industry.The thesis begins with the current research of market structure of China's banking industry. First of all, through the empirical analysis of market structure, the type of market structure of China's banking industry is the oligopoly. Then, the market performance of China's banking industry is measured, and it is not good. Especially state-owned banks are obviously behind joint-stock banks. Based on the former two parts, this thesis had carried on a few times of regression tests, on the basis of Berger model. After all, it was proved that there was not relationship among market structure and performance of Chinese commercial banking as any existing hypothesis described. Meanwhile, it also indicates the most basic reason might lie in the historical problems, which produced the efficiency-lacked state-run banks with huge scale. At last some suggestions are put forward.