The Analysis Of Bank Market Power In China

As the RMB business opens to the outside world in all directions, a mass of foreign capital banks flock to China market, as a result, the competition between China banks tends to be fierce. At present, three State-owned commercial banks have finished the reform of the joint-stock system and reorganization for listing on the stock market, and both profit-ability and capital-scale have been greatly improved, but the overall efficiency is still low. Market-power result in lower-efficiency. The paper attempts to analysis bank's market power by industry organization theory.The market-power theory in foreign countries is mature relatively, but the research in China is getting started. Based on the former research results, the paper goes step further to analyze the market-power in China banks that is considered to be of strong market-power. Market-power is the key factor that influences the overall low-efficiency, which did not form spontaneously in market, but was led by monopolization in administration; breaking this monopolization is the inevitable choose.The paper contains five parts. Firstly,the paper introduces the topic-selection meaning, the thought train and the main innovative points; Secondly, analyzes the present market structure and market action of China banks via the usage of traditional industrial organization theory, and considers that China banks belong to the type of oligarch monopoly market structure, difference between it's productions is small, barrier to entry market is high; Thirdly, introduce the defination, reviews former research literatures and summarizes main theoretical models on this aspect; Fourthly, makes an empirical analysis of present situation of bank market power in China; Lastly, comes to the main conclusion, gives the suggestions about breaking market-power and raising competition capacity of China banks.