The Analysis On Impact On Changes In China’s Financial Structure To The Profitability Of Commercial Bank

Under the planned economy system, enterprise can get capital only from banks, because there is no securities market. In the early-1990s, China has established capital market and The enterprise starts to carry on complete stock reform. Stock market’s is day by day prominent in financial system. Chinese financial reform pays more attention to the development of stock market in order to introduce the developed stock market into our economy to resolve the existing problem in it. However, this is the case that the finance through bank lending is the main channel for the enterprise financing. Therefore it is necessary to conduct the research to our country financial structure, and study the relationship between financial structure and bank performance.Based on the theory of financial structure, this paper has analysis the financial structure of China. Moreover it also studied the relationship between financial structure and bank performance.The main content and conclusions are as follows:In chapter1, this paper makes the introduction on the surroundings and the meaning. In chapter2, this paper summarizes the connection the development of the theory of financial structure and the studies about the relationship between financial structure and bank performance. In chapter3, this paper has analysis the financial structure of China based on the study by Asli Dwmirguc-Kunt and Ross Levine (1999). In chapter4, it studied the relationship between financial structure and bank performance. In chapter5, it makes the main conclusion and the Policy suggestion.Through the empirical study, it draws the conclusion:stock markets are developing but China still has a Bank-based financial structure. The development of stock markets is good for the performance of Commercial bank.Therefore, make the suggestion that the bank finance should be given priority and the stock market should be developed properly. The Commercial bank should draw support from the convenience which the Stock market provides to sharpen own profit ability.