Research On Market Structure,Property Rights Structure And Performance Of Chinese Banking Industry

On the way of banking reform,there has been a dispute between market and property rights structure reform in academics. Some argue that optimizing the market structure of banking industry should be put on first. Other scholars hold that reforming the property rights structure is key . But which is more important ? This thesis had an empirical analysis on performance of Chinese banking industry from two angles of market and property rights structure, based on theory of industrial organization and data of Chinese banking industry. The results showed like this.(1) Now, oligopoly is present in the Chinese banking industry. However, from developing trends, the market structure is transforming from oligopoly to competitive. Then we had an empirical analysis on relationship between market structure and performance of Chinese banking industry, based on the data from 1992 to 2003. The thesis pointed out that market concentration had a negative effect on profit, which is opposite to SCP paradigm. And scale variable had a significant negative effect on profit.(2)Currently,state-owned ownership structure accounted for a dominant position in Chinese banking industry. Then we had an empirical analysis on relationship between property rights structure and performance. The results showed that state-owned shares had a significant negative effect on profit. That is, property rights structure is an important factor which effects the performance of Chinese banking industry.(3)At last, we had an empirical analysis on performance of Chinese banking industry, with the perspectives of market and property rights structure. The results showed that scale variable is the determining factor, but market concentration and state-owned shares are the secondary factor. Therefore, market structure is the determining factor effecting performance. Comparatively, property rights structure is secondary.