The Research On Evaluation And Optimization Path Of China’s Financial Structure

As one of performance of financial development in a country, the optimization of financial structure is important to the development of economy and finance to the country. Since reform and opening up, China has achieved great progress in financial reform. However, there’s some problems show in the financial structure, such as stated-owned commercial banks are still strong monopolies in banking system, bank assets enjoy absolute advantages in financial system and continued expansion of LDR etc., which is stumbling blocks to financial development. Therefore, it is crucial to drop a optimization path of China’s financial structure to solve these problem.On the one hand, we establish a Comprehensive evaluation index of financial structure developing level anal get the weight of each index by analytic hierarchy process(AHP), then combining with fuzzy evaluation method, we get the scores of China’s financial structure developing level in 2012. The scores is 75.6813, which means China’s financial structure developing level in 2012 is just pass the general level during 2007 to 2013. On the other hand, we find the affecting factors to the financial structure though theory analysis, including economic development, transaction cost, financial development, financial innovation and institutional change. After we quantify the financial structure development index by principal component analysis(PCA), we establish an econometric model and find that, 1)it has long-run equilibrium relationship between China’s financial structure and these affecting factors in 1992-2012. 2) financial development and institutional change has a positive effects on China’s financial structure development index, while economic development,transaction cost and has a negative effects on China’s financial structure development index as a long-term trend in 1992-2012. 3)financial innovation has a positive effect on China’s financial structure development index in a short term, while transaction cost still has a negative effects on China’s financial structure development index.Base on the research, we promote a optimization path of China’s financial structure, Including 1)continuing carry out marketized reform of financial system and establishing diversified and multiple levels of financial structure. 2)promoting adjustment of banking, securities and insurance at micro level. 3)continuing financial innovation to reduce transaction costs and financial costs.4)establishing scientific development and optimize financing structure.