China's Banking Market Structure And Its Rationalization Discussed

According to the dominated market structure, banking market structure, to some extent, determines and influences the market conduct of the commercial banks, proceeds to the next step to determine and influence the banking market performance. In other words, the strengthening of the vitality, the advancement of the performance and the enhancement of the competitiveness of the Chinese Banking Industry depends, to a large extent, on the reasonable banking market structure. On the foundation of the definition of the concept of the banking market structure, and the definition of the basic factors determining the banking market structure, this thesis will make a positive analysis on the Chinese Banking market structure, from the perspective of market share, market concentration ratio, barriers to entry and barriers to exit, and economies of scale. Then we can arrive at that the Chinese Banking market structure is at a transition period. The transition period is a period at which the monopoly-oriented market structure is transiting to the monopoly-competitiveness-oriented market structure. This chapter will also analyze the impact and the causes of the Chinese Banking market structure to the market performance. Integrating the successful experiences of the formation of the foreign reasonable banking market structure with reality of the Chinese Banking Industry, this thesis will attempt to offer some reasonable possible suggestions for the sustainable development of the Chinese Banking market structure in the transition period.