Our Country Commercial Bank Market Structure And Efficiency Of The Empirical Research

According to the SCP theory of industrial economics, this thesis introduces and summarizes relevant theories from predecessors’academic research, and makes empirical analysis and discussion on the market structure and corporate efficiency of Chinese commercial banking, using analytical method of CRn, HHI and DEA.The results showed:market structure of commercial banks in China is constantly in transition from oligopoly to monopolistic competition, with more and more competition. However, the market structure of some new business, such as retail financial products, is still in high monopoly, even with a higher level than the traditional banking business. The major reasons include:the first-mover advantage of state-owned commercial banks in emerging field, the maturity level of consumers, and the limitations of emerging business in their own development. In aspect of enterprise efficiency, state-owned commercial banks were behind the joint-stock commercial banks in terms of combined efficiency. But from data analysis, the gap of their pure technical efficiency is continuously becoming narrow. The combined efficiency gap is mostly caused by low scale efficiency of the state-owned commercial banks. This mainly roots in the historical burden created by the state-owned commercial banks in their unlimited scale expansion, the low efficiency of banks’internal operation and the responsibility of government and regulatory agencies.Finally in this thesis, according to the different status in market structure and the differences in combined efficiency, domestic commercial banks are divided into 6 levels. Suggestions on banking development are also given to the commercial banks at different levels.