An Analysis of China's Banking Structural Effect and Its Impact on the Location of Mediumandsmall Commercial Banks
YUAN Ying (Business school of Wuhan University, Hubei Wuhan, China 430072)
Empirical analyses made in the frame of basic concept and theory of banking market structure shows that market centralization degree of China's four large stateowned commercial banks is above 80 percent. However, China's banking doesn't appear obvious characteristic of economies of scales. Due to the existence of entry barrier and the absence of effective exit mechanism, China's banking takes on coexistence phase of excessive competition. The microeffect induced by the market structure is that four large banks' excessive monopoly and diseconomies of scales. The macroeffect is the shrinks of the credit of bank system, which can't offer powerful support for substantial economy growth. So when determining the market location strategy,mediumandsmall commercial bank colony represented by emerging stock commercial banks and city commercial banks should fully consider the market structural effect.
【CateGory Index】： F832.3