The Competition and Equilibrium Condition among the China Banks

Abstract

Since the beginning of the financial crisis, no matter the domestic or the international environment of the bank industry has become more complex and the competition also becomes fiercer. After a series of financial system reforms, China’s banking industry has already actively participated in the fierce market competition. This paper examines the competitiveness and equilibrium of China’s commercial Banks from 2008 to 2017 by using the Panzar-Rosse model. At the end of this essay, some suggestions are proposed, so as to ensure that in the furious market competitiveness, the banking industry of China can develop healthily and placidly.