Study On The Relationship Of Market Structure And Performance Of Bankcard Industry In China

Bankcard, as a modern integrated electronic payment instrument, has many functions ,such as consumption, settlement, credit, financial management and so on. It is a combination of traditional financial services with modern information technology and an important product of modern financial innovation. In recent years, China's bankcard industry has developed rapidly. Types and quantities of transaction of bankcard in China has expended continuously. However, comparative to foreign mature bankcard market, China's bankcard industry is still in its primary stage and lacks competitive advantage. Therefore, based on an accurate grasp of the market structure of China's bankcard industry and its development trend, the paper analyzes the relationship between market structure and performance of bankcard industry in China and promotes some suggestions for the future development.The paper has five parts. Chapter one, it points out the research background and meaning as well as its structure and research method. Chapter two, the paper introduces some related theories, including SCP paradigm, hypothesises on market structure and performance and an academic model, then it reviews the literatures on this issue. In chapter three it presents a general overview of China's bankcard industry, and then analyzes its market structure type and development trend. Chapter four focuses on the empirical study on the relationship between market structure and performance of bankcard industry in China. Finally, in chapter five we summarize the main research conclusions and promote some development suggestions.The innovation of this paper lies in that it selects the relationship of market structure and performance of bankcard industry as research object and uses the theory and method of the studies on banking industry for reference. Based on the analysis of market structure type and development trend of China's bankcard industry, it uses the panel data to examine the relationship of market share, market concentration and performance. The study results show that the market structure of China's bankcard industry was oligopoly before 2005, and is transiting into monopolistic competition. Market share of bankcard enterprises has a positive influence on its performance, while market concentration of bankcard industry has a negative impact on performance of bankcard enterprises. According to the results, neither MP hypothesis nor ES hypothesis is supported by bankcard industry in China. With the decline in market concentration of China's bankcard industry, the performance of it will take on a growth trend.