Study On Scale Economics Of Chinese Banks And Related Industiral Policies

The bank of china are facing simultaneously tow pressures of the operation system change during the transforming form planned economy to market-oriented economy, and ever realizing economy of scale after the WTO entry. Realizing bank's scale economies is a crucial issue which determines the survival system, the financial security of the country and the internationalization of the new situation after china's WTO entry. Research on banking industry's economies of scale had began in 60s last century, which has been mature. But in China research on scale economies of banking has began in the 1990s. Based on modern economic and financial theories, financial theories, industrial organization theory connected with practical examples, this paper is trying to present a systematic discussion on the problems in the operation of China's banks, and to lend some ideas to solve problem and enhance the scale economies of banking in China. We hope it can provide a little help to the development of China's banking.This paper defined the conception of scale economies of commercial banks over again after describing the relative conception of scale economies. At the same time, it analyzed the facts of affecting commercial banks'scale economies. Through analyzing characteristic and market structure of our banking industries, it analyzed the actualities of scale economies of internal commercial banks by using qualitative analysis. Then, it is known that the reason for scale diseconomy of the state-owned commercial bank is unreasonable property right system, imperfect of the organizational reform, the structure of company and so on, and proposing the way of realizing the of banking. At the same time, scale economies of joint-stock commercial bank is analyzed, we can know from which that the economies of scale have descended, pointing out the reason of the situation is the one sided pursuing scale expand, the property structure solely, low quality is serious and so on, and proposed the reform way. Finally the industrial environment has analyzed as well as the overall scale condition which the bank of China locates, in this foundation of which proposed the suggestion of industry policy.