An Analysis Of The Market Structure Innovation And Its Influencing Factors Of Chinese Banking Industry

After nearly30years of development, China’s banking market structure has undergone tremendous changes. From the beginning of the people’s Bank of China exclusive monopoly, to the coexistence of diversified multilevel system made up by the people’s Bank of China, the four major state-owned commercial banks, policy banks, joint-stock banks, city commercial banks, rural commercial banks, rural credit cooperatives, postal savings, foreign banks, and other banking financial institutions, which people’s Bank of China as the central bank, the four major state-owned commercial banks as the main body. Its market structure improved contiguously, competition also increased substantially.But the reform of China’s banking industry only last for a short time, the market structure still exists many problems, such as the oligopoly feature still apparent, market competition is still low, to a certain extent restrict the development speed of Chinese banking industry. Especially after our country joins WTO, economic openness rise ceaselessly. The influx of foreign banks is having a significant impact on the market structure of Chinese banking industry. In this case, do research on Chinese banking market structure, do analysis of the characteristics of Chinese banking market structure innovation and its influence factors, has important practical significance to seek China’s banking market structure optimization method and path.This paper first analysed the formation and innovation of the banking market structure, classified the factors as market forces, government forces and other environmental factors, which promote and affect the formation and innovation of banking market structure. Analyzed the economic mechanism of how market force and government forces to play a role in the economy as the theoretical basis of the study. Combined with the actual situation of our country, study from the development of Chinese banking industry, with market share index, CRn index and HHI index of Chinese banking market structure, the analysis of our existing banking market structure characteristics of China. Then analyse the characteristics and trend of the innovation of China’s banking industry market structure from three aspects:the innovation path, leading force and strategy of Chinese banking industry innovation. Finally through the establishment of VAR model for Chinaese banking market structure innovation of the factors that affect the empirical analysis to test the above conclusion, come to a conclusion:In a quite long period, the innovation of our banking industry market structure will still adopt governmental dominant progressive manner, but in the future, the effect of market mechanism will gradually enhance. At the final part of the article, put forward suggestion to the adjustment of Chinese banking industry structure.