China’s Flawed Banking Market Structure Must be Rectifiedi

YU Yongzhen1 (于永臻)
Editorial note:

There is great disparity between China’s banking management efficiency and the top international standard, with relatively low efficiency in credit monetary allocation. In this paper, Yu Yongzhen sets out the hypothesis that “medium-sized banks promote competition”. He believes that an important reason for the low efficiency of Chinese banking is the seriously flawed banking market structure. Namely, credit market shares are highly concentrated in the hands of the four major state-owned banks, with very few shares held by medium-sized banks or the badly undeveloped small banks. Full development of medium-sized banks plays a key role in the promotion of competition and efficiency in banking.

¥0.01加入购物车