By using the database of Bankscope,this paper analyses empirically the influence of credit screening power allocation on banks' performance. It finds that the bank's credit screening power has no significant effects on its performance. This means that the concentration of credit screening power can't always improve the bank's performance. Although by concentrating its credit screening power,the bank can to a degree decrease the agents' moral hazard and reduce agent cost,but the bank's information cost will increase. Therefore,when a bank allocates its credit screening power,it should consider both agent cost and information cost,not blindly concentrating its credit screening power.