The Empirical Research And The Comprehensive Evaluation Of The Market Power Of China's Commercial Banks

This article is based on market power of banking industry to build a comprehensive evaluation index system and study the relationship between market power and market structure, market behavior and market performance. Through a comprehensive assessment and empirical research to search factors that influence the market power, and provide a theoretical basis.First, we establish the evaluation index system from the industry level and enterprise level respectively, based on the SCP analytical framework, take factor analysis, cluster analysis and fuzzy K-means clustering algorithm as a research tool.Second, we use factor analysis to assess the market power, and finds that the monopoly of banking industry is declining, the market power of state-owned commercial banks was significantly higher than joint-stock commercial banks, and each bank s market power is raising by a big margin. The cluster analysis shows that China's commercial banks can be divided into three categories, first for the ICBC,ABC,BOC and CCB; second for the BC,CITIC,EBC,CMBC,CMB,FIB and SPDB; third category is SDBC and HXB.Third, the study of relationship between inner factors shows that market power is positive with market structure and negative with market behavior.But the relationship between market power and the market performance is different which is negative at the industry level and positive at the enterprise level.