Competition, Property Rights, and Performance (Research on Industrial Organization Issues in 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 point to the neglect of risk prevention in corporate governance structures, or argue that overcoming institutional defects requires learning costs. This book employs institutional economics methods to conduct an in-depth study of the institutional changes in China's banking industry organization. Unlike general, historical descriptions by other scholars, it offers a systematic economic analysis of institutional changes, drawing several important conclusions.
Secondly, it expands the traditional "market structure - corporate 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 focus equally on market structure and property rights structure.
Thirdly, 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.
Fourthly, 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 recommendations.