The Empirical Study Of The Relationship Among The Market Structure, The Management And The Performance Of The Bank In China

After three decades of reform and opening-up, the banking industry has developed from the ultimate monopoly of People Bank of China to the Situation that the four largest state-owned commercial banks competed with other non-state-owned commercial banks in this market, which is composed of joint-stock commercial banks and city commercial banks. However the changes of the situation of market competition and the reformation of the property right of the state-owned enterprises in the banking have brought a significant improvement of the Performance, the domestic banks in many aspects still have a long road to go if they want to catch up with the foreign commercial banks, specifically there is a large gap of efficiency and management of liquidity and security between the domestic banks and the foreign banks.China has opened the civil banking industry to the foreign banks on Jan 1, 2007 .After more and more foreign banks are entering into the civil market, China's commercial banks will face the fiercer and crueler competition. In this macro background, how to improve the market structure of the banking and how to upgrade the level of the management are very important problems, if we want to lift the level the performance of the domestic banks to struggle with the foreign banks. To solve these problems, this article studies China's banking industry with the industrial organization theory and the management of commercial banks.The structure of this article is as follows:The first part introduces the background and the topic of this article.The second part is related theory and literature review, introducing the research results in the field of commercial bank at home and abroad.The third part conducts an empirical research on market structure of China's banking industry. In this part, 18 commercial banks are chosen as subjects. Sample includes data from 2004 to 2008.With this data, this part analyzes the market share, concentration rate and the barrier set by the government.The fourth part discusses the management of China's commercial banks. This part first introduces the efficiency management and the risk management. Then we estimate the bank's efficiencies by stochastic frontier approach (SFA) .At last we analyze the other factors of risk management. The fifth part is the regression analysis. In this part, we first introduce the definition of the performance of the bank, after that we build a regression model. And based on the model, we make empirical research on relationship among market structure, management of commercial bank and the performance of bank. Then we analyze the results of research.At the last part, we get the conclusion of this article and put forward some policies and suggestions to improve the market structure of China's banking industry as well as to upgrade the level of the management of China's commercial banks.