This article examines the impact of bank competition on bank business performance and its mechanism of action based on panel data of Chinese commercial banks from 2010 to 2022.It is found that bank competition has a nonlinear impact on bank business performance.China's banking market is in the region to the right of the inflection point of the inverted U-shaped curve,and an appropriate increase in bank competition can improve bank business performance.Compared with large state-owned banks and joint-stock banks,the effect of bank competition on business performance is more significant in urban commercial banks and agricultural commercial banks.The results of the mechanism study show that net interest margin and non-interest income play an important role in the process of bank competition affecting bank business performance.The findings have important policy implications for deepening the reform of various banking institutions and promoting the high-quality development of the banking industry through market competition.
Bank competitionBusiness per-formanceNet interest marginNon-interest income
NETL
NSTL
万方数据
