查看更多>>摘要:This study seeks to analyze the relationship between competition and profitability in the Chinese banking system. In term of empirical analysis,this study uses the bank-level data for Chinese commercial banks over the period 2004-2011. Both the concentration ratio and the Panzar-Rosse model are used to measure the intensity of competition in the Chinese banking sector. An empirical model is established to examine the link between competition and concentration using the concentration ratio as a proxy of the degree of competition. The findings from this study suggest that the Chinese banking market is in a state of monopolistic competition and the market shares controlled by the four state-owned banks have declined. Moreover,in contrast with the traditional view that this is a positive relationship,this study indicates a negative relationship between concentration and profitability in the Chinese banking system,suggesting a positive relationship between competition and profitability.