The Influence Of The Market Power Of The Bank On The Efficiency Of The Bank

Under the background of economic system reform in our country,the financial industry as the core of modem economy,banking as the main part of the financial sector,is to realize the coordinated development of economy and society is the most important social tools.Therefore,the efficiency of banks is not only related to the efficiency of the whole financial industry,but also has great significance for social stability.At the same time,the competition between commercial banks,joint-stock banks,and some foreign banks,as well as some local banks,has intensified.Realistically a banking industry's strategic status and dominance,in enjoying the special policies of national governments,so the natural monopoly and makes the bank return to scale in a high monopoly market structure.Therefore,it is more necessary to study the relationship between the efficiency of China's banking industry and its market power.This article uses the SBM(slack-based measure)method to calculate the conditions of the bank efficiency,and to measure the degree of monopoly bank index as exogenous variables at the same time introducing time variable,using the nonparametric estimation method to test and describe the relationship between the degree of monopoly and the efficiency of the bank.Using this method,we measure 126 banks,including the state-owned four commercial banks and other commercial banks,joint-stock banks and some foreign banks as well as local banks.Results show that the degree of monopoly significantly affect bank efficiency,the big four state-owned commercial banks(BOC,ABC,ICBC,CCB)monopoly was significantly higher than that of other banks,their efficiency was significantly higher than that of other banks,and with the constant improvement of the degree of monopoly,the efficiency value is also increasing.After eliminating the four state-owned banks,the result is still a positive correlation between efficiency and monopoly,which indicates that the existence of the four state-owned banks does not affect the relationship between monopoly degree and efficiency.This article uses the two-way fixed effect model to explore the influence the bank's own assets profitability and cost control ability,results show that the bank size,ability to innovate,GDP growth rate are positively correlated with self-owned assets profitability,non-performing loans negative correlation with self-owned assets profitability;Bank size and cost control ability are negatively correlated.This paper also puts forward some Suggestions,regulators should broaden the banking industry admittance threshold,we will increase support for small and medium-sized Banks,to strengthen banking revenue diversification,further improve the skill level of the banking sector.