Research On The China’s Banking Market Structure

Along with the continuous deepening of China’s economic reform, Chinese banks, especially state-owned banks, are facing unprecedented pressure for reform, construction of oligarchic banks and small and medium-sized banks to large, medium and small symbiosis of effective competition in the banking market structure is the socialist market economic system and the inevitable demand of. In the economic development of Chinese to indirect financing, the bank an important position in the allocation of resources is self-evident. The unreasonable structure of the banking market resulting in savings investment conversion rate decreases, can not meet the financing needs of economic development. The convening of the Third Plenary Session of the eighth conference decision, to further expand the internal and external opening of China’s financial industry, improve the financial market system of our country, to strengthen the basis of regulatory, allowing private capital legally established small and medium-sized banks. This article carries on the analysis from five aspects (market concentration degree, economies of scale, product differentiation, social barriers to entry and exit barriers) system to affect China’s banking market structure factors. That the market structure of China’s banking sector is still not reasonable, need to be further optimized. Firstly, clarify the context of the development of the theory of market structure, then make a concrete analysis of the influence of the five factors of market structure of banking industry in China. The market concentration effect on the market structure of banking industry in China, first selected the evaluation of market concentration degree of the index, and make a concrete analysis of each index, then on China’s banking market concentration were studied quantitatively, the results shows that China’s banking market concentration is too high, also belong to the oligopoly market structure, which is not conducive to long-term economic development. Effect of scale economy on the market structure of Chinese banking industry, analyzes the status quo and the causes of the economic scale of China’s banking industry. Product differentiation of influence on the market structure of banking industry in China, that China’s banking industry, the existence of serious homogenization of competition, differentiated products and services development problem. Enter exit barriers on China’s banking market structure effect, think at present in our country the high market concentration degree and policy barriers has the very big relations. At the same time, the Chinese government on the banking sector exist implicit guarantee, the banking market exit mechanism is absent. policy recommendations, to encourage the establishment and development of the private banks and reduce the concentration of the market structure of banking industry in China; use of market competition mechanism, speeding up financial innovation, expansion of Bank of China, industrial organization, market structure, product differentiation; and steadily push forward mixed operation, improve the Bank of China, industrial organization, market structure, economies of scale; the establishment of a deposit insurance system, improve banking entry and exit mechanism.