Research On Market Structure,Property Right Structure And Performance Of China's Banking Industry

Currently, China's banking industry reform is already in a crucial period and it is on edge to move on, for according to the commitment to WTO, China will open its banking market completely toward the foreign capital by the end of 2006.The banking competition pattern and operation form will go through unprecedented profound changes and more deep reform in China's banking industry is badly needed.This thesis is tightly centered around competition, property rights, performance. It analyzes commercial banks' structure of market and property rights and measures their technology efficiency by DEA. On this basis, the thesis carries on empirical test to explore relations between market structure, property rights structure and performance. The empirical results demonstrate that the market strength hypothesis and the efficiency structure hypothesis about China's banking are not valid, the function of the market structure and the performance of the banking is not obvious. In the meantime, the efficiency has a conspicuous positive relationship with the performance and increase in efficiency contributes to the performance. Also, the thesis finds out that the relation between efficiency and types of property rights (state-owned commercial banks & stock system commercial banks) is conspicuously positive by regression analysis, but the relation with degree of market concentration is not conspicuous.Therefore, the present banking industry reform should emphasize on the improvements of property structure and corporate governance while the former is the dominant content and the latter is the subsidiary. At last the thesis gives its suggestions in terms of market structure and property rights structure to promote performance of China's commercial banks.