Discussion On Market Structure And Ownership Structure Reform Mode Of China's Commercial Banking

According to the promises to the World Trade Organization(WTO)in that year, China has already opened its banking industry on December 11th, 2006. It is implied that the RMB business was allowed to be developed by the foreign banks and internal and the external banks were really on the same scratch line from then on. This was significant to the China's financial system which was dominated by the banking industry. In order to cope with the foreign banks as seasoned competitors, a broad debate about the banking industry reform was ever spread out in academia and banking industry. However, there is not any verdict to this problem up to now. Property right reform and market structure reform, which one should be emphasized particularly on? And which is the optimized way to reform our banking industry. With the financial system opened step by step, a great changes must happened to the asset scale, risk management, market structure and property right structure of our banking. The core of all the changes is the performance. To this, Industrial Economics must offer an academic explanation and policy advice.Based on the characteristic of banking industry in the transformation period in China, we analysis how the factors influenced the performance of banking industry. Due to our special history, China's stated-owned banks have ever played very important roles in our economy. So we will emphasize the reform of stated-owned banks more than the joint-stock banks. Detailedly to say, what we have done in this paper is basing on the review of vested reform path, combining with the facts and drawing the conclusion by deduction.The conclusions we draw in this paper are (1)As far as the stabilization and performance of our financial system were concerned, the optimum market structure is oligarch competitive market. (2)That the property right was monopolized by the government is the root of our banking industry's inefficiency, and the motivation of property right reform. (3)To improve the banking industry's performance, the government should spare no effort to construct an honesty oriented society.