Abstract: Based on the characteristics of banking industry in the transformation period in China,the author analyzes how the factors influence the performance of banking industry.Generally,the study  in this paper is based on the review of vested reform path,combining with the facts and drawing the conclusion by deduction.As far as the stabilization and performance of the financial system were concerned,the optimum market structure is oligarch competitive market.That the property right was monopolized by the government is the root of our banking industry’s inefficiency and the motivation of property right reform.To improve the banking industry’s performance,the government should spare no effort to construct an honesty oriented society.

Key words: stated-owned bank, market structure, property right structure