China’s Banking Market Structure Optimization Based On The Empirical Analysis Of Bank Stability

Chinese bank industry developed rapidly, China’s stable and rapid economicgrowth has made a major contribution, at the same time it occupies Chinese financialdominance, playing an important role in the social economic life. Bankingdevelopment quality and stability directly affect our overall economic stability andperformance. However, since the nineteen eighties occurrence of American savingsand loan associations crisis, banking is in turbulent state, and the Mexico financialcrisis, Southeast and East Asian financial crisis, then in2008just erupted in theinternational financial crisis, are reflected in the international financial marketinstability. Financial crisis to our country banking adverse effects, but also exposedthe Chinese banking industry high forestall the low efficiency problem. Therefore, inorder to realize the healthy and stable development of the banking industry, must beon the banking market structure optimization, change the traditional high monopolyand low efficiency of the status quo. However, the market structure of banking of thestability of the bank ’s influence, as well as how to maintain banking stability iscarried out under the premise of optimization, which is always controversial, is themain research problem.This paper mainly focus on these two issues, first knowledge of the industrialorganization theory and the theory of the banking crisis were reviewed and comb, thetheoretical basis for follow-up study, from the market concentration, three aspects ofthe market out of the barriers and product differentiation investigated the status of thebanking market structure, and use an integrated method of indicators to measure thestability of the banking industry in China; then combined with the front of themeasurement results, using the model of the Granger causality test and VAR model toanalyze China’s banking market the relationship between the structure and bankstability, the use of concentration, the Hirschman Index, the stability of the value ofvariables in the empirical analysis, the conclusion is: the market structure affect thestability of the reasons, which shows in the optimization of bank the process ofindustry market structure, consider the premise that the importance of bankingstability; Finally, according to the results of the analysis of the first two parts, theoptimization of China’s banking market structure in banking stability under thepremise that the policy recommendations. The conclusion of this paper is, The banking of our country for a moreconcentrated market structure, but there are still excessive monopoly situation.Therefore, the optimization of China’s banking market structure should be reformedsystem of organization of state-owned commercial banks, improve the operationalefficiency of the bank; further relax the control of the banking sector, improve theperformance of the banking market; improve product differentiation, and promote thedevelopment of banking; increase bank internal management mechanism reform,enhance the management level;to speed up the banking property right reform,improvethe efficiency of banking market.