Study Of Industrial Policy Based On The Optimization Of The Market Structure Of China’s Commercial Banks

The main feature of industrial policy is to compensate market failures and protect thegrowth of young national industry. Irrational market structure can affect the developmentand adjustment of industrial policy, in the implementation of policy adjustment, the marketstructure will change, it will become more reasonable but also brought new problems.Therefore market structure and industrial policy has a complementary relationship.According to the industrial organization theory, market structure can affect marketbehavior and market performance, therefore irrational market structure will have a negativeimpact on market behavior and performance. Healthy and effective development ofCommercial bank sector has a deep relationship in the lifeblood of the national economy.Commercial banks’ reform has been a hot sector discussed by the academic session. Thediscussion of how to reform has also been a focus of discussion which still has not come toa certain conclusion.Most of these discussions are focusing on the design of the property rights system.But many problems and contradictions have a great relationship with their characteristicsand market structure of government owned commercial bank industry policies. Therefore,this article will focus on the relationship between commercial banks’ market structure andindustrial policy and make a further explore of the relationship between the two. At last,this article will put forward measures to optimize the industrial policy and the trial ofadjustments according to the conclusion, such as reduce commercial banks’ entry barriers,made the commercial banks’ exit mechanism more complete, the policy control ofgovernment owned commercial banks more reasonable and promote market-orientedinterest rate reform.