Yunnan Banking Market Structure And Market Performance

The SCP paradigm of industrial organization theory is the problem of domestic and foreign banking competition on the main analytical framework lies in its core market structure and market performance relationship among research, market structure is one of the important factors.So this article from the market share, market concentration, and other angles the structure of the banking market in Yunnan Province showed that, although the banking system in Yunnan Province monopolistic competitive market structure to the evolution of the trend, but by the strength and size constraints of national policy, difficult to change the short-term oligopolistic market structure type.Performance analysis shows that the banking industry in Yunnan province found that in addition to the financial supervision and the allocation of resources causes performance differences between commercial banks, not outside, and in the operating performance and cost performance in terms of state-owned commercial banks and joint stock commercial banks show more obvious differences . And the performance of the banking market in Yunnan Province the factor analysis and ranking.Berger model based on the established regression model applied to 15 commercial bank branch samples for a sample of 2003-2008 time span, market share (MS), market concentration (HHI) for banks measure of industry market structure, in order to pre-tax return on assets (ROA) measure of bank performance, cost income ratio (RRC) is an alternative to bank efficiency variables, and the introduction of bank size (LnA), banks risk (LDR), GDP growth rate in Yunnan Province (RGDP) and other control variables, using panel data study of the Chinese banking market structure and performance of the intrinsic link between. Empirical findings show that: (1) market share, market concentration and banking performance was negatively correlated, indicating that the "market power hypothesis" is not established in the banking industry in Yunnan Province. (2) an alternative to bank efficiency variables - cost to income ratio (RRC) and the overall sample of banks return on assets (ROA) was significantly negatively related to the efficiency of banks and bank market concentration is related to equations based on the assumption that Berger "efficient structure hypothesis "may be established in the banking industry in Yunnan Province. But the in-depth analysis found that the market share of the increase is caused by the expansion of bank size, rather than the process of endogenous market competition, efficiency and the bank has no direct relationship with the efficiency structure hypothesis that the excess profits and highly concentrated banking market structures are derived from some of the bank's high efficiency, high efficiency by the bank to provide banking services will increase efficiency, enhance the social surplus does not match the conclusion. Therefore, this result may be caused by the Government's arrangements for the financial system, rather than "efficient structure hypothesis" was established in Yunnan Province. Finally, according to the results of this study, we summarize the commercial banks operating in Yunnan Province, there is some worth focusing on the issues and put forward a reasonable proposal.