An Study On The Relationship Between China Banking Property Right Structure,Market Structure And Performance

Along with bank market structure adjustment of commercial banks and thediversity of property right structure, the performance of the commercial banks showdynamic change, therefore, the empirical study of China’s commercial banking marketstructure, property right structure and its impact on performance of banks is crucial,itis practical important to further promote our country commercial bank reform .Analyzing the market structure of Chinese banking industry by market share,concentration ratio, barriers to entry and exit,the result shows that while there is atrend that market structure of Chinese banking industry is changing to monopolycompetition,but market structure is still state-owned commercial bank oligopolyAnalyzing right structure by the property right and property right concentration ,theresult shows that ,after the reform of equity market, there is a trend that rightstructure is diversity, decentralization, but state-owned commercial banks is stillhighly state-owned concentrated equity of ownership structure. The study of Chinacommercial bank performance dynamic investigation ,shows that state-ownedcommercial banks and joint-stock commercial banks performance have improved tosome extent, but the performance of state-owned commercial banks is markedly lowerthan the joint-stock commercial banks.Make property right structure into traditional SCP frame, this thesis analyzesthe inner link between the market structure right structure and performance of Chinesebanking industry by using a panel data model which is taken 15 commercial banksin the period 2000 ~ 2010 as samples ,with market share ( MS )、state-owned sharepre-tax asset profit rate ( ROA )as indexes for measuring market structure, propertyright structure、the performance of commercial banks respectively,further morebank scale , cost-income ratio,and increase rate of gross domestic product are eintroduced into the model as control variables. The results show that：(1) themarket share is significantly negatively correlated with bank’s performance,so therelative-market-power hypothesis doesn’t exist in Chinese banking industry(2)state-owned share is significantly negatively correlated with bank’s performance (3)under the action of the property variables, market share is more sensitive to theperformance. Similarly, under the action of the market variables, state-owned sharesis more significant influencesthe to bank performance. (4) The bank scale are related with banking pre-tax asset profit rate ( ROA ) but statistically not significant,the operational risks are negatively related to commercial banks performance, thegrowth rate of GDP is positively related to the bank performanceAccording to those empirical results, this paper puts forward the followingsuggestions：(1) to enhance China’s commercial banking business performance, itshould reform the market structure and property right structure at the same time (2)Chinese banking market structure is reformed reasonly .Such as reducing the marketentry and exit barriers, build multivariate competitive environment, encouragejoint-stock commercial bank scale expansion, improve the efficiency of scale. (3) Tofurther optimize the structure of property rights of commercial banks.Suck as reducethe proportion of state-owned shares, appropriate to reduce the concentration ofownership.