A Study On The Influence Of Competition Among Commercial Banks In My Country On Stability

Since the commercialization of China's banking industry,scholars have generally advocated to improve the level of competition in the industry to improve the efficiency of the banking sector.In recent years,China's banking industry with the increase in the number of institutions,the degree of banking competition gradually strengthened,the overall efficiency of the banking industry has improved,China's existing 17 private banks,including the construction of nine and eight Business of private banks.The relationship between competition and stability in banking has been one of the controversial topics in banking.In this paper,through the review of the literature,combined with all aspects of international and domestic markets,combined with the development of China's commercial banking industry,the study of China's banking competition and banking cross-economic environment,the stability of the operation.Through the study of China's banking market,this paper explores the relationship between bank competition and bank stability in China,and puts forward the views on the stability of China's banking industry.To study the relationship between bank competition and the stability of banking industry,it is necessary to study the transmission mechanism of stability of banks.This article also has a lot of information to sort out the main several transmission mechanisms: 1.Through the regulatory body to adjust the bank competition model to influence the stability of the bank.2.Through the moral hazard to study the banking competition and stability of the transmission mechanism.3.Through the concession value,the intensification of bank competition will erode the bank's concession value,thus the impact of the stability of the bank.4.Macroeconomic cycle view that the macroeconomic environment and the specific factors of enterprises through the impact of the financial system and the risk of infection,to affect the stability of the entire financial system.Based on the empirical analysis of 15 commercial banks with the largest market share in China from 2006 to 2015,this paper chooses lerner index,concentration index and HHI index as the index of bank competition structure to analyze the stability of the bank.Select the Z-score as a measure of bank stability,while selecting the NPL as a reverse measure of bank stability indicators.The main conclusions are as follows: 1.China's banking competition and the stability of the banking system has an inverted U-shaped relationship,that is,when the banking competition is very weak,the competition between the banking industry will increase the stability of the banking industry,but In the degree of competition to a certain extent,that is,after the inflection point,the banking industry competition will weaken the stability of the banking industry.2.On the relationship between bank size and stability and risk tolerance,this paper concludes that the larger the size of the bank is to weaken the stability of the bank and increase the bank's credit risk.3.The rate of return on capital can play a positive role in bank stability,but it does not matter much about the risk of banking.4.In the analysis of concentration and competition,it was found that the concentration of the bank was too large to increase the bank's exposure.At the end of this paper,the countermeasures and suggestions are put forward.Through the banking industry to do the legislative rules and regulations,improve the banking competition mechanism and a complete exit mechanism to keep the bank competition in the appropriate range.By ensuring the banking system development environment,strengthen the banking supervision,improve the bank's governance structure to strengthen the stability of the bank.