Banking Market Structure, Institutional Economics

Since our country enter WTO, the economy of our country increase at very fast speed. With the development of our country, the enterprises'demand for capital become more and more large. Nowadays financing still mainly depend on indirect way. Though the direct financing way has expand a lot .bank is still the main body of finance, and the structure of banking industry will influence the growth of all kinds of economies directly. A reasonable banking industry structure will accelerate our country's growth.Recently,the discussion of banking industry structure become hot spot , which intent to judge if the structure is reasonable or if the structure needs being changed ? To tell one thing reasonable or not, it must set a standard. If the structure deviate the standard, we can tell the structure is not reasonable. Some papers use SCP tool, which is a very popular analysis tool throughout the world, they judge the structure through performance .Other papers discuss the problem through the finance functional perspective,they think the structure is decided by the finance function. In this thesis, the writer depend on the Institution Economics theory, deduce a law that unequilibrium of the institution will result in institution vicissitudes, and that is why the writer use Institution Economics as the analysis tool.This thesis is based on the logistic structure:seeking problems ---analyzing problems---solving problems. Based on this thought, the whole thesis is divided into five parts:The first part is the base of the whole paper, it mainly introduce the signification of the banking industry structure . It point out banking industry structure is the relationship of each banks at their quantity,share,scale and the competition format which is decided by them . The first part also introduce the standard of how to judge the structure type.