An Empirical Study On The Relationship Between Market Structure And Market Perfomance Of China's Banking Industry

Nowadays,comprehensively deepen reform with the flourishing is to various industries in China.Among all the industries,banking enterprise,the special one that mainly operates on monetary,is going to play a very important role in our present and future economic development.Despite that China has initially built upthe diverse market structure in the banking industry.Yet it does not shake the oligopoly in our banking system.Plus,Chinese government is still relatively strict on the control over banking market,which to an extent limits the free competition within banking industry and prevents the market from fully booming.In the wake of rapid progress of our national economy,how to adjust the development of banking industry in accordance with the whole society has become a significant problem.Moreover,if the banking enterprise ever seeks further development and prosperity,it certainly needs to distinguish the relationship between banking market mechanism and market performance.Only through this way we can break down the outdated beliefs and break through.The empirical results indicate that oligopoly still exists in our banking market structure.To be exact,state-owned large commercial banks hold perch in the market whilst the whole banking market performance is comparatively low.Efficient structure hypothesis and traditional collusion hypothesis are yet to emerge in our banking market.Thus,based on the empirical study on the relationship between Chinese banking market structure and market performance,this article comes to the following proposals:propel financial mixed operation and form scale economic effects;monitor and improve the market performance,strictly control the financial risk;encourage financial innovation driven model,advance product diversity,etc.The commercial banks in China can only overcome its development bottleneck,realize its economic restructure,constantly increase operation efficiency,expand its operation results,drive the performance advancement of the whole banking industry and act on international convention of the banking industry via continuously learning advanced business practice and transforming management idea with the help of big data and cloud platform in this ever developing information economic epoch.