Analysis on Relationship between Externality and the Banking Competilion

Same capitals and factors are difficult to get same rewards through market competition situation under the condition of externals.By the penetration point of profit function,analysis the happening changes in the input-output comparison of one bank.The costs of financial products include external marginal costs,choose tax burden,operating expense as the key elements of the external marginal costs,analysis the influence level of externals for the efficient competition,thereout,put forward the policy proposal for optimizing the exteral surrounding of the banking competition.