Empirical Study On The Market Structure,Property Right Structure And Performance Of China's Commercial Banking

The establishing of Central Huijin Investment state-owned commercial banks Co., Ltd. on December 2003, marks that the official start reform on the Property Right Structure of state-owned banks . So far, Construction Bank, Industrial and Commercial Bank, Bank of China's shareholding system reform have been completed and listed, the Agricultural Bank's bank share system reformation was also in January 2009, and other national joint-stock commercial banks and city commercial banks are also ongoing structural reform of property rights.How Series of property rights reform impact on the performance of banks, Whether or not there are still problems lefted. At the same time as large number of foreign banks go into China and the diversity of business, a slow change of banking market structure, market competition become more intense. How to improve the performance of China's banking industry to make it on a dominant position in the fierce competition, has become one of the most pressing problems in China's economic development process.This article is tightly centered around "competition, property rights, performance" analyze the status quo of China's commercial banking market structure, property right structure, and at the same time do a regression analysis on the relationship of market structure, property right structure ,the performance within banks. The results show that market the correlation between market concentration and bank performance is not conspicuous positive, but the correlation between market share and performance of banks is conspicuous negative. The empirical aspects of bank performance property rights and,regression analysis on Construction Bank, Industrial and Commercial Bank, Bank of China, Agricultural Bank and seven joint-stock commercial banks show that the correlation between ownership concentration, the largest share proportion and performance of banks is conspicuous negative. The separate regression analysis on seven joint-stock commercial banks get the opposite conclusion that ownership concentration and e largest share proportion is conspicuous positive. In addition the proportion of foreign strategic investors show a negative correlation between performance of banks, but statistical correlation was not obvious.Listed banks' board of directors has played a positive role in the controling of risks, but the outside directors do not play a role, or even too many outside directors have made a crowding-out effect to internal directors, thereby affect the quality decision-making of board directors. The relationship within supervisory board scale, the profitability of banks, the ability of risk controling and liquidity is not significant.According to the results of regression, this paper propose the policy recommendations that optimize the market structure of commercial banks by competition, through the gradual exit mechanism for the government to reduce the rent control, maintain a certain degree of concentration of ownership, determine the scientific strategic investors introduction strategy, the board of directors strengthen auditing and controlling on risks, raise the proportion of external supervisory board et.