China Banking Market Structure and Performance:Based on Panel Data 2000-2010
This paper is devoted to analyzing the relationship between China banking market structure and performance. We employ the methodology of SCP (structure-conduct-performance), introduce macro economics factors into regression model and use the panel data of 14 major commercial banks in China Mainland from 2000 to 2010. The results show that China banking market is still in the oligopoly status, and the oligopoly degree reduces gradually over time. The oligopoly degree has a negative correlation with the performance. The deposit-loan ratio and the capital adequacy ratio have both positive correlations with the performance. We propose four advises for reducing the oligopoly degree and improving banking industry. They are (1) Reducing great banks network externalities barriers; (2) Drawing private capital invests into the banking industry; (3) Slackening restrictions to foreign banks; (4) Developing the market of small-micro enterprises loan.
Key words: Market structure; Banking performance; Oligopoly; China
Abdus Samad (2008). Market Structure, Conduct and Performance: Evidence from the Bangladesh Banking Industry. Journal of Asian Economics, 19, 181-193.
Giuliano Iannotta, Giacomo Nocera, & Andrea Sironi (2007). Ownership Structure, Risk and Performance in the European Banking Industry. Journal of Banking & Finance, 31, 2127-2149.
GUO X. M. (2012).Increasing Financial Innovation to Better Serve for the Development of Micro and Small Enterprises. West China Finance, 4, 6-9.
HE R. (2005). A Comparative Study on Market Structure, Efficiency and Performance in Banking Industry—A Review Based on Shanghai Banking Industry. Journal of Finance and Economics, 12, 29-40.
LIN Y. F., SUN X. F. (2008). Banking Structure and Economic Growth: Evidence from Chinese Provincial Panel Data. Economic Research Journal, 9, 31-45.
Rima Turk Ariss (2010). On the Implications of Market Power in Banking: Evidence from Developing Countries. Journal of Banking & Finance, 34, 765-775.
TU W. C., & CHEN F. X. (2006).Ownership, Market Structure and Performance of China Banking Industry—Based on Revised S-C-P Paradigm. Industrial Economics Research, 4, 42-53.
XU Z., SHEN Y., WANG X. K., & SHEN M. G.(2009). Market Structure and Banking Industry Performance in China. Economic Research Journal, 10, 75-86.
YUAN Y. (2006). The State of Competition of the Chinese Banking Industry. Journal of Asian Economics, 17, 519–534.
- There are currently no refbacks.
How to do online submission to another Journal?
If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:
1. Register yourself in Journal B as an Author
Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.
Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: firstname.lastname@example.org; email@example.com; firstname.lastname@example.org
Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada
Telephone: 1-514-558 6138