Competition, Property Rights, and Performance - A Study on the Industrial Organization Issues of China's Banking Industry

Author: Zhou Xiaoquan
Publisher:
Publish Date: 2004-03-01
Features: The sustained low performance of the banking sector has become a practical issue troubling China's economic transformation. The reasons for this are diverse: some in academia attribute it to the effective counterbalance of administrative monopoly to competitive markets, while others argue that it stems from inadequate risk prevention in governance structures, or that overcoming institutional defects requires learning costs. This book, first, employs institutional economics methods to conduct an in-depth study of the institutional changes in China's banking industry organization, differing from other scholars' general and historical descriptions of the issue. It offers a systematic economic analysis of institutional changes and draws several important conclusions. Second, it expands the traditional "market structure - firm behavior - economic performance" analytical framework to better suit China's national conditions. Through model construction, it systematically analyzes factors influencing banking performance, concluding that China's banking sector reform should prioritize both market structure and property rights structure. Third, it conducts an empirical study of the market structure of China's banking sector, which, compared to similar research, employs more comprehensive methods, more systematic data, and more robust arguments. Fourth, it proposes medium- and long-term industrial policies for China's banking sector from the perspective of industrial organization and offers a series of phased implementation suggestions.