An Empirical Study On The Relationship Between Market Structure And Performance Of Chinese Commercial Banks

Under the influence of financial system reform, the state-owned commercialBanks, joint-stock commercial Banks, local commercial Banks, cooperation offoreign Banks and rural credit cooperatives and other forms of bank market structurehas been formed. In recent years, our country increase in the number of listedcommercial Banks, joint-stock commercial Banks to rise and the speed of financialfield opening to the outside world degree strengthening has been accelerated, thusoptimizing the market structure of China’s commercial Banks to change its highmonopoly, low performance of the business model to improve its performance isincreasingly important. So in this paper, the first level of our country commercialbank market structure and performance analysis, regression analysis on therelationship between the two, and finally on the basis of the results of empiricalanalysis under the condition of accord with China’s national conditions to improve theperformance level of Chinese commercial Banks put forward some suggestions.In this article, on the theory of industrial organization SCP paradigm, and ourcountry in2005-2005, the main16commercial Banks as the theoretical basis andresearch samples. First use of CRn index and the HHI index to study the presentsituation and development trend of our country commercial bank market structure, theconclusion is that although the current our country commercial bank market structureis still in a monopoly position, but also in gradually deepening in the direction ofmonopolistic competition. Then from the resource allocation efficiency and theefficiency of the commercial bank of China, with total assets of yields and dataenvelopment analysis (dea) method analyzed the performance of commercial Banks.Again based on the above analysis of the related data of our country commercial bankmarket structure and performance to create regression analysis model to explore therelationship between the two, the results show that our country commercial bankmarket structure and its performance has certain negative correlation relationship,effective support the theory of SCP. Finally, according to the result of analysis, fromthe government’s control, financial regulation, financial talents, put forward suggestion to bank system, hope to be able to to improve our country commercialbank results have certain reference significance.