Research On The Competition And Peformance Of Chinese Banking Industry

Revolving the Chinese Banking industry competition and the efficiency, this article followed the revised SCP (structure-conduce-performance) frame to analyze the Chinese Banking industry's property right structure, the market mechanism, the enterprise conduction, and the banking performance. The article had drawn some basic conclusions and had a few preliminary discussions to optimize the banking industrial organization.The first chapter in this article showed us the research background, the selected topic significance, the industrial organization theory development and the application in banking industry. The first chapter also simply introduced the research content, method and the innovation which mainly aimed at the limitation when the industrial organization theory using in the banking industry and pointed it out, the property right should be considered in theoretical analysis. The Second chapter focused on the Chinese Banking industry's structure analysis, including property right structure and market mechanism. The state-owned property right proportion dropped while the privately operated property right proportion rose in Chinese commercial banks. At the present, the property is still controlled by the government. The third chapter analysis was the enterprise conduction, which has been restrained by the market mechanism. Meanwhile, Conduction can impact the market structure and the economical performance at the same time. Through the analysis about the price conduction and the non-price conduction, the article pointed out that the Chinese Banks competed in high quality customers by non-price competition methods, such as developing new technology, advertising, and marketing; The analysis about the merger and acquisition behavior in the Chinese Banking Industry disclosed the heavy administrative monopoly. The fourth chapter was the banking industry performance. From the research on the credit-fund disposition efficiency and the property profit ratio of Chinese banks, we can see that the state-owned commercial banks' profit was lower than the joint-stock bank. The credit market had obviously administrative monopoly. Whereas, after the joint-stock system transformation, the Bank of China, the Construction Bank and the Commercial Bank improved their profit efficiency dramatically. The fifth chapter had drawn some conclusions and the preliminary discussions including how to optimize the Chinese banking industrial organization and the banking performance. The article pointed out that we have to relax the entry and withdraw barrier, continue to transform the joint stock system in commercial banks and break out the administrative monopoly in the future.