Empirical Analysis On Competition Of Market Status Of The Banking Industry Of China

Banking is the core of the financial industry is the lifeline of the national economy; improve the efficiency of the banking industry to the economic development of great significance. At present, China's banking industry is entering a critical period of restructuring changes. With the state-owned commercial banks diversified equity, the full liberalization of financial markets and the gradual relaxation of financial control. Banking competition in the market status in larger change.In this paper, using CRn index and HHI index and Panzar-Rosse model to measure the competition in the market structure of the banking industry, in the regression analysis, we used three methods of model to estimate, 1996-2007 respectively with the total 14 commercial banks, five large commercial banks and other nine commercial banks to estimate the sample test data, but also taking into account China's accession to the WTO in 2001, there were be a great impact on the banking industry, so divided all the 14 commercial banks into two time periods (1996-2001 and 2001-2007) to analyze.Through the empirical analysis we find that at present the competition structure of China's banking industry is the monopoly structure, and as the passage of time it has gradually strengthening trend. And since China's accession to the World Trade Organization in the banking industry, it has a more significant impact in the five years after the entry to the WTO, and China's financial sector gradually open to the outside world, especially the opening of the banking industry is larger, it largely promoted the degree of competition of China's banking industry. In the empirical results also reflect this change. At the same time the Chinese study found that the development of commercial banks is not balanced, the banking market is becoming more obvious monopolistic characteristics, and the market is not fully competitive. 5 large-sized commercial banks have greater market share, while other commercial banks regardless of size or capital asset size is generally small and weak. In view of the current state of competition in the market, its causes simple analysis, the main problem is the structure and system, the banking industry and the competitiveness of the bank's revenue model of China's banking industry's competitiveness significantly impact state. With empirical results and causes of this paper, the relevant policy proposals, mainly from lower market entry barriers and improve financial supervision, and promote the development and enhancement of mixed financial innovation in five aspects to promote effective competition in the banking market and improve the efficiency of financial resources to achieve the optimal allocation of financial resources.And all of these provide the accurate theory basis for the financial decision-making sector to design the effective economical and financial policy.