Study On The Location Of Commercial Bank Branches

The competition of obtaining the customers and gaining cultivate customer loyalty by the commercial banks never stopped. The core of the competition is to deliver the accurate bank service to the customers. Generally, the bank headquarters manufacture product, the branches carry on retailing. Therefore, commercial banks' branches played the extremely essential role in the retailing process. At present, consolidating the branches by the four state-owned commercial banks in China basically didn't have normative standards and internal procedures. But, the retailing of commercial bank branches operating activities ran through the entire process. Therefore, it is necessary for us to study the location of commercial bank branches.The paper took Agricultural Bank of China Huaian Branch as an example, selected 39 direct business branches to carry in-the-spot investigation, used the qualitative and quantitative methods to research the factors influencing the location of the branches. The result indicated: the main factors impacting the location of commercial Bank branches in Huaian are operating area, the population and the disposable income. Besides the operating area has the different effects on the balance of bank deposits in the different models, population and disposable income have the positive effects on the balance of bank deposits. Thus, when selecting the location of the commercial bank branches, operating area, population and disposable income are needed to be taken into account. Transportation, source of tourists, competitors and other factors, although the effect is not significant, but also should be taken into account.The paper constitutes of five chapters:ChapterⅠintroduces the research background, the significance, the present situation of domestic and foreign research, the research frame, the possible innovation and insufficiency and so on.ChapterⅡdescribes the theories of commercial bank branches location, including the Raleigh model, the Harvard model, retail saturation theory, the heartland theory and the business circle theory, to provide a theoretical basis for studying the impacts of commercial bank branches location.ChapterⅢanalyzed the economic and social development in Huaian and the operation conditions of the agricultural bank branches. This chapter described the economic development, the income of urban residents, as well as deposits and loans of the Agricultural Bank Branches, agricultural loans, operating profit and non-performing loans, qualitatively analyzed the impact of the economic development on the location of bank branches.ChapterⅣis the part of empirical analysis. Firstly, we selected the population of business circle, income level, traffic, land prices or rents, source of tourists, competitors, operating area and so on, studied the impact of single factor on the location of commercial bank branches. Secondly, we established a double logarithm model to carry on the empirical analysis according to the 39 sample data of agricultural bank branches in Huaian.ChapterⅤis conclusion and policy suggestion based on the empirical results of ChapterⅣ. We summarized the factors influencing the location of commercial bank branches, and provided the reference for selecting the location of commercial bank branches in the future.