Empirical Research on the Efficiency of Chinese Banking with Foreign Bank Entry

摘要

Three years has passed since Chinese banking was opened completely, the influence on Chinese banking efficiency of foreign banks' entry is becoming the focus of scholars. The article makes an empirical analysis on this issue based on the statistic data of 13 banks from 1998 to 2007.The article indicates that the exogenous policy causes Chinese banking market structure to remain monopoly and being lack of efficiency, and that the entry of foreign banks causes the cost and risk of Chinese banking to rise by competitive effect. Based on the empirical result, the article proposed to increase opening degree and to speed up the marketization of interest rate as some countermeasures.