A Study On The Effect Of Banking Market Structure On Performance In Hebei Province

Finance is the core of modern economy. The banking sector is an important intermediary to national macro-control, playing an important role in the financial system and in the growth of the national economy. Recently, based on the theory of industrial organization, many domestic scholars studied the relationship between the structure and performance of the banking market empirically, taking the entire banking industry as the research object. However, the imbalanced development of economic development leads to huge differences in the level of economic development in different regions for a long time. the study, based on the national data, will inevitably weaken the link of China’s regional banking market structure and market performance. Based on above, the article will take Hebei region for example to study the evolution of the banking market structure, the development of market performance and the relationship between the banking market structure and the market performance from the perspective of the regional financial. This study has great significance to improve the regional banking market structure and improve the performance of the banking market.This article make a empirical study on the correlation between the banking market structure and market performance.Firstly, it describes the theoretical basis of the banking market structure and market performance, including the theory of industrial organization, the theory of the market structure and market performance and the relative strength hypothesis and the collusion hypothesis and their test models. Secondly, it makes empirical analysis of the market structure and the banking market performance separately, based on the indexes including market share, market concentration and a number of indicators to reflect the operation performance, asset allocation performance and credit risk performance. On this basis, selecting relevant variables, the article make empirical analysis of the correlation between the banking market structure and market performance. And two types of banking market for make a comparative analysis of State-owned banking market and non-state-owned banking market. Finally, based the above results, the article presents a number of policy recommendations to improve the banking market structure and the performance.