Abstract: In the view of industrial organization, this paper examined the market share and concentration ratios of the banking assets, deposit, loans and profit quota; and it was found out that chinese banking market is undergoing the transitional stage from oligopolistic market to the competitive one.Furthermore, the financial indexes of the banking industry were estimated and the current market performance was assessed from the aspects of profitability, cost and security.Based on the previous analysis, the problems existed in the current banking market structure were stated and the corresponding optimization approaches were put forward.