After The Wto Entry Of China's Banking Market Structure And Business Performance Analysis

Since China entered WTO, China’s banking market has been further opened to the world, which has created many thesis on side effects and good effects in China’s banking market structure and domestic banks’performance. Within ten years from entering WTO, China has proactively met the commitment in accordance with WTO timetable so that foreign banks can be involved into the competition in China’s banking industry through a variety of ways under the environment of open market.The thesis applies with index analysis to measure the China’s banking market structure through indexes of Ra Rl Rd Rp,CRn,H and N on the basis of financial data from domestic listed banks’annual reports, as well as applies with single index analysis method to measure the operation capability and efficiency, and trend of performance in recent few years through indexes of profitability, efficiency and operating costs. It compares performances between China domestic banks and foreign banks in developed countries by contrast method. Finally regression analysis is applied to scientifically measure the results.We can make the conclusion that currently China’s banking industry has oligopoly monopoly market structure with the competition among commercial banks and oligopoly of four large banks, and the former has higher operating efficiency than the latter. Additionally, although foreign banks can be involved into the competition of China’s banking market under the environment of China’s meeting the commitment of WTO and thoroughly opening market, China’s banking oligopoly monopoly market structure has not been changed essentially. However, opening market has still made good effects on the development of China’s banking industry, from the perspective of four large banks’minor reducing market share and further fierce competition of other commercial banks. Although the efficiency of China’s banks is lower than foreign banks in developed countries, gradually improved performance of domestic banks indicated the difference between the reality and previous disconcerting predict. The reasons and suggestions are made out accordingly.