Empirical Study On China's Banking Structure And Economic Development

With the continuous deepening of reform and opening up, China's economic development has made remarkable achievements at the same time, China's financial markets also continue to improve all aspects of the system, have been expanding for economic growth has laid a good foundation. As financial markets the most important part of China's banking sector to play its optimal allocation of resources and investment and financing, and other basic functions play an increasingly important role. In the context of the fierce market competition, China's banking industry structure and empirical studies the relationship between economic growth, not only to optimize the structure of China's banking industry to provide empirical evidence and theoretical basis, but also to promote long-term prosperity of China's economic growth has important practical significance.In the course of development of China's banking industry to make a simple comb structure, the combination of the theory of industrial economics and authoritative statistics data to the core indicators of bank concentration, analysis shows that China's banking industry concentration showed a clear declining trend, however, by objective factors, the four lines of deposits and loans accounted for about 50% remained in the short term is difficult to change significantly. Based on efficiency and risk management, and many other considerations, should be taken into full consideration the actual situation of the banking structure located in the large state-owned bank-based, other joint stock, joint health and orderly development of foreign banks.This empirical part of the existing theoretical and analytical framework based on the use of 1988-2008 between the statistical data for 29 provinces and autonomous regions of China's provincial-level panel data for the study, empirical analysis of China's banking industry structure and economic development the relationship. Among them, the use of deposit concentration and characterization of bank loan concentration as a proxy for the degree of concentration, while minimizing other factors that may affect the economic development of the interference, adding control variables set to ensure the reliability of the study. The empirical results show that:(1) banking structure variables and economic growth variables show a clear negative correlation, indicating that bank concentration optimization can significantly promote economic growth; (2) banking market structure variables and the level of provinces, regions and variable cross-term and economic growth are negatively related, indicating that bank concentration is optimized to the level of market and non-nationalization process of the provinces have a more significant the higher the impact, to a greater extent to promote local economic development; (3) control the collection of all variables in the model all have better estimates, see the specific part of this Chapter. On this basis, this paper presents the corresponding policy recommendations, including:(1) state-owned enterprise reform and restructuring of the banking industry combine to create synergy, and jointly promote economic development; (2) continue to encourage and support small and medium joint-stock banks development and growth, while focusing on the fundamental role of state-owned banks, so the two complement each other to get healthy; (3) to break the unreasonable restrictions, to promote healthy competition in the banking sector, to promote market-oriented reform.This paper is divided into five chapters, the first chapter is Introduction, describes the background and study topics of significance, literature review, and trying to innovations; The second chapter reviews the structure of China's banking industry, including the development process of China's banking industry, China's banking industry structure and other aspects of the status; The third chapter of the economic impact of banking structure on the mechanism, in theory for the empirical analysis below provides the analytical framework; Chapter 4 for full-text key empirical analysis, including results for the empirical analysis of policy recommendations; Chapter 5 for full-text summary.