Research On Market Access Of Private Banks Initiated By Private Capital In China

The 19th National Congress of the Communist Party of China clearly put forward the"relaxation of service industry access restrictions".For banks,an important part of the modern service industry,their access restrictions are expected to be further relaxed.In the past,although private capital could enter the financial field,it didn’t have the sponsor qualifications and did not have the right to make a decision on the operation of the bank.The Third Plenary Session of the 18th CPC Central Committee proposed that private capital should be allowed to initiate the establishment of financial institutions such as small and medium-sized banks.Private capital was allowed to have the right to control the bank,and the operation of private banks which were set up by private capital was no longer subject to government administrative intervention.In 2014,the pilot project of private banks started.By the end of 2017,there were 17 private banks initiated by private capital in China.With the changes of the economic policy environment in our country,especially the current economy of our country being faced with the grim situation of "the real economy to the fictitious economy",the report of the 19th CPC National Congress emphasized "enhancing the capability of financial services real economy".The market access conditions of private banks have changed accordingly.The original intention of private capital in setting up private banks was to break the monopoly of industries and provide financial services to specific groups of people with its personalized,distinctive and differentiated financial products.At present,the market access that private capital initiates the establishment of private banks is too strict compared with rural banks in capital and other aspects.It remains to be explored how to determine which aspects of the current market access are high and how to reduce the access threshold.Based on this,the article has carried on the research and the discussion to these two questions.Based on the related concepts of market access of private banks set up by private capital,this paper uses the theory of institutional change in the new institutional economics as guidance,and uses Stackelberg Leadership Model to analyze the barriers to entry of private banks initiated by private capital.Then,by discussing the historical evolution and market access status quo of private banks in our country,this paper analyzes some problems existing in the market access of private banks from the aspects of capital threshold and so on,proving them from an empirical perspective.Next,the paper draw lessons from the successful experience of market access of private banks in the world,trying to summarize the experience of market access that is consistent with the situation in the Mainland of China.Finally,with the current reality,this paper puts forward some effective countermeasures to the market access of private banks initiated by private capital in our country.