Study On The Market Structure And Its Relationship With Market Performance Of China’s Banking

With reformation in the financial system, China’s banking sector has gradually formed acommercial banking system, consisting of four big state-owned commercial Banks which isthe main body of it, joint stock commercial Banks, urban commercial Banks and ruralcooperatives and so on. Based on the theory of traditional SCP model in industrialorganization,this paper discusses market structure, market behavior and the developmenttrend of market performance of commercial banking in our country, also investigate relationsbetween market structure and market performance,and then put forward some policysuggestions to improve the performance level of commercial banking in our country.This paper firstly introduced the development of the traditional SCP paradigm inindustrial organization theory, and also introduced the other classic industrial organizationtheories. Secondly, according to the basic framework of SCP model, this paper did a in-depthanalysis for the industry organization of our country’s commercial banking. The first step isabout the analysis of market structure in the banking industry, which is the key point ofanalysis and is quantitatively and qualitatively analyzed through market share, marketconcentration, product differentiation and access barriers; The second step analyze marketperformance in our commercial banking, mainly using quantitative analysis through theprofitability index, the index fluidity and safety index r; The fourth step is to analyze therelations between market structure and market performance. Finally, according to the resultsof the analysis, this paper puts forward some suggestions with strong policy guidancesignificance to promote market performance in our banking industry.