A Research To Market Structure, Efficiency And Performance Of The Chinese Banking

This article carried out the empirical analysis on the centralization and get-in and get-out barriers of Chinese banking, based on which it revealed the slow development of newly-emerging banks and unshakable position of four oligarchs in the short term. The lack of the medium-sized banks to transit from the overlarge state-run banks to too small-sized new banks resulted in the top-heaviness and polarization of the bank market structure. Either the new getting in or the existent getting out of the market, there were various high market barriers that made the industry structure optimization to be confined. Through dividing the banking administration ability into two basic aspects, Benefit Creating Ability and Business Expanding Ability, it set up two DEA models separately and analyzed commercial bank's efficiency from different angles. Based on the above-mentioned solution individually, a two-dimentional distribution map was achieved, which regarded the two efficiency indexes as its abscissa and ordinate variables. According to different characteristics in different areas, it reflected how about their current comprehensive power in market competition, and which measure should be taken against the existing problems in near future. For examining whether our banking situation could confirm the variety of hypotheses, this article had carried on a few times of regression tests, on the basis of Berger model and various conditions assumed by those hypotheses. After all, it was proved that there was not relationship among market structure, efficiency and performance of Chinese commercial banking as any existing hypothesis described. As to this, it was assumed that the most basic reason might lie in the historical problems, which produced the efficiency-lacked state-run banks with huge scale. In view of the difference developing courses between the new banks and the state-run banks, a judgment was concluded that there existed a structural change of models between the two. So, it introduced a mute variable into the revised model to examine again. Finally, a regression equation was achieved with an explaining ability about 70%, which could reflect the inner link among the three factors to a great extent. Further more, the article gave its economic explanation and practice direction, accounting for the realistic situation in Chinese bank industry. Because of the above-mentioned conclusions, it proposed a series of policy recommendations to optimize the structure of market, such as reforming the organization of the state-run, establishing alliance among the newly-emerging, improving get-out mechanism, setting up deposit insurance system. In addition, it also advised to elevate the Chinese commercial banking efficiency, by means of loosing the interest rate control, promoting the finance-informationlized degree, etc.