Analysis Of China's Banking Loans Market Competition State Based On PE Index

Banking is the core of the financial industry and the lifeblood of the national economy.With the completion of China's loan interest rate marketization reform,the banking loan market competition situation has undergone great changes.Accurate measurement of the degree of competition in the banking loan market is not only the need to evaluate the effectiveness of China's banking reform,but also a series of empirical research on the competition of banking loan market.Therefore,it is necessary to explore the competition degree of China's banking loan market.Based on the PE index method,this dissertation measured the competition degree of China's banking loan market.Meanwhile,CRn and HHI as the auxiliary indicators.The empirical results of the PE index show that the degree of competition in China's banking loan market competition has been improved in general.In 2008-2010,the degree of competition in the banking loan market slowed down.In 2014-2015,the degree of competition in the banking loan market declined slightly.This dissertation argues that the 2008 global financial crisis and the government's "4 trillion"investment bailout behavior led to the slowdown in the loan market competition.Since 2014,the macroeconomic downward pressure and the banking industry itself for four consecutive quarters of non-performing assets increased led to the decline in the banking loan market competition.The results of the CRn and HHI in the structured indicators show that China's banking market competition has improved,but there is still a gap between competitive market standards.In order to further enhance the competition degree of China's banking market,this dissertation puts forward some suggestions from the government and the industry itself,and provides a reference for the healthy and sustainable development of China's banking loan market competition.In order to promote the healthy and sustainable development of China's banking loan market competition.