Competition and Efficiency of China's Banking Industry

摘要

To explore the proposition that the choice of the Chinese banking market structure should be positioned in the oligopolistic structure, the extended PR model was adopted to measure the degree of competition of China's banking industry in 2002-2009, using the canonical correlation-DEA method to evaluate the efficiency of China's banking industry, the econometric model was used to explore the relationship between bank competition and bank efficiency, the conclusion is that China's banking industry is at an oligopoly stage, but the efficiency of the banking industry has not reach effective, competition in China's banking sector is helpful to promote efficiency, competition in the banking sector should be strengthened to improve efficiency, and then form a new and higher level of concentration.