Banking Competition And Efficiency In China Empirical Research

With the economic development, the financial industry plays an important role in a country's economy. And the banking sector is the core of the financial sector, so it is very important for banking development that promote country's economy has a sound and orderly development. With the 2006 round of opening up China's banking sector, foreign banks have poured into China in various fields and have compete with domestic banks, which means China's banks into a new era of competition. In this period, China's banking sector has undergone great changes in competitive conditions, market structure and bank behavior. In order to promote China's banking sector development and establish a sound financial market this paper set out the relationship between the banking competition and banking efficiency.This paper is divided into three parts. The first is the introduction, by studying the relevant literatures at home and abroad to introduce the domestic and international research in banking competition and banking efficiency the latest developments. And point out China didn't have paper in the relationship between banking competition and banking efficiency, so as to lay the foundation for the second part of this article.The second part discusses the banking competition and efficiency in 1994-2008, and the relationship between the two also discussed. The second part is divided into three chapters.(1) The first chapter studies the banking industry competition for 15 years, through structural method and non-structural method of competition was measured separately and found that China's banking industry in a monopolistic competition environment, and competitive values show the trend of the first fall after the rise ; structure method and non-structural method of competition indicators for China's banking industry has a different conclusion; different types of competition between banks to varying degrees, degree of competition in China's banking sector continues to increase.(2) The second chapter discusses the banking sector efficiency and economies of scale, concluded that the level of efficiency of China's banking industry is not high, and the efficiency of different types of banks are different; China's banking industry is in the economies of scale basically, but there are slight diseconomies of scale, and the joint-equity bank and foreign banks have economies of scale of the trend; economies of scale and X-efficiency there is a positive correlation.(3) The third chapter is about the relationship between competition and efficiency studies, concluded that China's banking competition and the concentration existence a negative correlation; Bank of China, the level of competition and the number of banks in the years between 1994-2008 as a whole showed a negative correlation relations; China's banking sector competition and efficiency in the value of a positive correlation between.With the theory research in the second part, the third part put forward some suggestions to speed up the development of the banking industry, namely, to reduce market barriers, and deepen banking reforms, the promotion of mixed industry development and improving financial innovation.