Research On The Influence Of Banking Market Structure On The Performance Of Chinese Banks

With the development of China's banking industry,its market structure has also undergone tremendous changes.From the four state-owned banks at the beginning of reform and opening up to the current more than 3,000 banks,gradually monopolizing from a high level of monopoly,the banking industry in this context Market structure has become an important factor affecting bank performance.Therefore,based on an analysis of the current market structure and bank performance,this paper uses the empirical data of China's listed banks for the period 2008-2016 to measure market structure and market share as indicators of market structure,and Return on total assets is a measure of performance,examining the impact of market structure on the level of bank performance.The study finds that there is a significant negative correlation between market concentration and overall banking performance,and there is a significant positive correlation between changes in market share and overall banking performance.It shows that the reform of the banking market structure has promoted bank performance.Further analyzing from the perspective of banks of different ownership nature,compared with state-owned banks,the decline in market concentration has a greater impact on the performance of non-state-owned banks.There is no significant relationship between market share and state-owned bank performance,and there is a significant positive correlation with non-state-owned bank performance.It shows that there is no market power hypothesis in China's banking industry,and the lower concentration is conducive to improving the overall performance of banks.Finally,based on the above conclusions,policy recommendations are proposed from the government level and the banks themselves.From the government level,it is necessary to continuously improve the market access and withdrawal mechanisms of China's banking industry,actively encourage and guide private capital to enter the banking industry,and strengthen banking risk supervision;from the bank's own level,accelerate the transformation of business models and actively develop financial innovation,Expand service channels.It is hoped that this can have some reference significance for improving the performance level of China's banks.