The Changes Of Property Rights Structure And Market Structure Of Commercial Banks In China(1979-1999)

Comrade Deng Xiaoping once said: "Finance is very important, it is the core of modern economy, if the finance doing a good job, the whole economy will be better." And the reform of the banking system is the core of financial reform. From the 1978 reform of the economic system, Chinese economic reform has been made noteworthy achievements: First of all, the end of the unification of the banking system, the establishment of a dual banking system; secondly, the commercial banks market structure has changed a lot: from the monopoly market structure to an oligopoly then changes to the monopolistic competition; Finally, the commercial banks'operating performance is also growing rapidly. However, Chinese banking system is lagging seriously behind the process of reform of the national economy. On December 11, 2000, China's accessed to the World Trade Organization, and promised to open the banking fields step by step in five years. So the period from 1979-1999 is an very important stage in the development of Chinese banking industry, it can be said that it is"the initial stage"of the reform of Chinese commercial banks, and to further deepen the reform of commercial banks laid the foundation. In this paper, in the first and second part, descript the changes in property rights structure and market structure in the historical stage investigation, according to the changes of operate rights of the commercial banks, the changes of property rights may be dividened into 3 stages: (1)1979-1984,from single bank system to dual banking system,(2)1985-1993,the enterprised reform of specialized banks,(3)1994-1999,the establishment of modern commercial banks. Use the theory of Industrial Economics—market organization theory, inspect the changes in asset shares, deposit shares ,loan shares and profit shares, analyses the changes of the market structure: completely monopoly-oligopoly-monopolistic competition. Then analyses these changes on the impact of the operations and managements of the commercial banks; in the third part use the software of Econometric --EVIEWS , to analyses the structure of property rights and market changes in the structure of China's commercial banking business performance impact that the structure of property rights reform and market structure changes are complementary relationship; in the last part, summarized the successful experiences and the problems still exist after 20 years' reform. The 20 years'reform makes the banking system more and more developed, the commercial banks(especially the state-owned commercial banks)do much contribution to the economic reform, with the process of the state-owned enterprise reform, but the banks accumulate huge bad assets, and the administrative interventions are still exist in the banks'operation. Ultimately ,those all because the reform of property rights is not complete.