The Analysis Of The Impacts Of The Domestic And Foreign Banks' Entry On The Northwest Banking Market

The trends of economic integration and trade liberalization become more and more obvious. At the same time, financial institutions have also accelerated the pace of transition from the east. The domestic commercial banks and foreign banks have transferred into the northwest market. At present, the branches of the domestic commercial banks and the foreign banks have focused on Shaanxi Province, the next are Gansu Province and Xinjiang Uighur Autonomous Region. And there are no branches in Qinghai Province and Ningxia Hui Autonomous Region. By the relevant data, this paper studies the three impacts of the entering of the domestic commercial banks and the foreign banks on the northwest banking market. The first is the impact on the structure of the banking market. Through the analysis we can conclude that the entry will reduce the market concentration, reduce the market entry barriers, and improve the degree of differentiation of the northwest banking market. Thereby, it will optimize the structure of the northwest banking market. The second is the impact on the behaviors of the northwest banking market. The domestic commercial banks' and the foreign banks'entry will enhance the competition and encourage collaborative behavior of market players. The third is the impact on the performance the northwest banking market. There are three ways. Those are "Catfish effect", human capital effect and technology transfer effect.