The Relationship Between Chinese Bank Systems Competition and its Efficiency
In the literature, banking competition could reduce monopoly rents and cost inefficiencies, and thus improve the welfare of the economy. This kind of benefits is especially important for transition countries, such as China, for the indirect financing constitutes the major source of fund for its companies. In mis paper, we measure the level and evolution of bank systems competition between 1996 and 2007. Making use of me micro data of Chinese commercial banks from 1996 to 2007 and RP method to measure the competition, we find fluctuations in the level of competition for Chinese bank system. Then we study the relationship between competition and efficiency, which suggests a positive relationship between them. So at this stage of banking systems development, we should encourage the competition between banks in order to improve their cost efficiency.
efficiency Granger China relationship
Xianliang Tian
The School of Business, Hubei University, P.R.China
国际会议
第八届武汉电子商务国际会议(The Eighth Wuhan International Conference on E-Business)
武汉
英文
1478-1483
2009-05-30（万方平台首次上网日期，不代表论文的发表时间）