| Analysis of Market Structure, Conduct and Performance of commercial bank started in1990s, and there are various ways and perspectives to study this SCP Paradigm. The traditional SCP Paradigm acts as the key part of industry theory, and there is cause-effect relationship among Market Structure, Conduct and Performance. Besides, SCP Paradigm creates a clear thread of the three forms. Contents of this article basically follows the structure of the school of industrial organization theory to analyze SCP paradigm, combined with China’s unique way of banking financial regulation, the special ownership structure of the banking sector. This also acts as an innovation point.Research methods include qualitative and quantitative analysis. Through the theory of industrial organization theory analysis and financial regulation, it found that there exists the financial regulatory constraint effect on market structure and market behavior of China’s banking industry. According to this analysis, our commercial bank market exists some problems as follows:first, the market concentration gradually decreased in the past12years, second, the Big Four still occupied most market share and free entry was difficult for many middle and small size commercial bank for our special property right. Besides, different banks’ products seem no different to consumer, and intermediate business take very small part in profits. Problems above mainly come from our special regulation system. Therefore, in order to estimate whether regulation has an effect on market performance, we first estimate the paradox of structure and performance, then find out commercial bank’s effectiveness used to describe market performance. At last, introduce property variable in SCP paradigm transmission process.The results show that there is a negative correlation between bank structure and performance,"the higher market share, the lower bank efficiency" in China’s market structure variables and indicators of banking " Structure-Performance " paradox, simply because the long-term banking serious entry regulation, supervision and management supervision of profit, which indicates the presence of the distorting effects of the financial regulatory banking competition. Then during the empirical analysis of its impact on bank performance, taking into account the different forms of ownership of banks enjoying different supervision, then indirect influences of "financial supervision" of the banking market performance can be introduced. In addition, due to regulatory factors represent property is only one factor affecting the bank efficiency, the article also added other factors affecting the overall efficiency of the banking sector and classification. The panel data includes14China’s commercial banks’operation and efficiency data from2000to2012, using Eviews6.0regression analyses the technical efficiency of the banking and property variables. Results show that regulation factor has a strong positive correlation with the pure technical efficiency and scale efficiency. In addition the bank’s capital adequacy ratio and loan-deposit ratio also enjoy a positive correlation with bank efficiency, while the effect of cost of personnel and network growth rates is not significant. Finally, the above conclusions are summarized and put forward policy recommendations to improve the management efficiency of the banking sector. |
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