A Study On The Impact Of China’s Banking Market Structure On The Banking Industry’s Profit

In recent years, China’s economy sustained healthy rapid development, the vigorous development of various industries in China, but compared to China’s banking industry in terms of profitability has always been a leader in various industries, the high profits of the banking industry to become the economic development of our country as a distinct characteristics. In particular, the banking industry in China has changed a lot since twenty-first Century, the structural reform of the banking industry has not changed the monopoly of the industry, and in the current banking market structure, the traditional method of measuring market structure is also adapted? What determines the high profits of China’s banking industry? This article mainly from the banking market structure of China, based on the perspective of the non structural approach, combined with macroeconomic development, the bank’s own level, on the Chinese banking market structure and the banking industry’s high profit margins between the impact and high profit factors.First of all, this paper empirically tests the market structure of China’s banking industry through the Panar&Rosse model of the non structural method. The result of the research shows: the method of traditional structure and non structure method of measurement results appear obvious difference, the method of traditional structure that monopoly degree of banking industry in our country has been in decline, rather than the trend of structural method is measured in terms of the structure and the method of traditional structure is consistent, but there is a year of volatility. China’s banking market structure is now in a monopolistic competition, but the market structure reform does not change the extent of its monopoly.Secondly using the results of the non structural method to the high profit impact of China’s banking industry and other influencing factors empirical model test. In banking high profit of empirical research, this paper found that national economy rapid development and profitability of the banking sector are positively correlated significantly with the level, and the bank’s own size, non interest income, banking market structure, the stock of money are and the profitability of the banking sector was negatively correlated. National economic growth, per capita wealth increased demand for the banking industry also increased, make the banking sector more profitable; in the banking market concentration the higher the degree of market power is stronger, bank profitability is strong; China’s current monetary policy caused by artificially high money growth on the banks’ earnings is adverse, non interest income accounted for total revenue increase did not have a positive impact on the banks’ earnings; the banking sector accounted for no economies of scale. Among them, the banking industry’s interest rate is not the market, and the banking industry is the main reason of the high profit of the banking industry.