Market Competition, The Structure Of Property Right And The Development Of Chinese Banks

With the deepening of the financial system reformation and the change of external environment for China entering WTO, the Chinese commercial banks, especially state-owned banks, are facing unprecedented competition pressure. In China, the market leaders had been state-owned bodies for a long time, which leads to a low marketing level of Chinese banks. So the change of the market structure would be good for the formation of competition environment and improving competitiveness. Because of Chinese special economical system, the property right structure reform becomes an unavoidable issue. Especially for state-owned banks, the property right structure reform plays a decisive role on the increase of Chinese banks. Therefore, the issue, whether the Chinese banks reform should emphasizes the market structure reform or the property right structure reform, comes to be the focal point of disputes. Whether the market structure reform or the property right structure reform, the financial system reform of China need to resolve the problem, which is how to improve banks performance, to enhanced competitiveness and induce financial development.Based on research results on influencing factors of financial development and bank performance, this paper researches the reflect of both the market structure and the property right structure with Chinese state-owned commercial banks and joint-stock commercial banks as the model. During researching with the research results on industrial organization theory, institutional economics and econometrics, this paper will test the relationship of the market structure, the property right structure and Chinese banks performance, around improving banks performance. On the basis of all investigation, it can be thought that the banking reformation in China should promote the market structure reformation while conduct the property right reformation of stat-owned banks, and improve competitiveness of moderate and small joint-stock commercial banks, perfect supervision mechanism, induce efficient competition.