Research On Site Selection For Branch Network Expansion Project Of CCB Ji' Nan

The increasing importance of retail banking is an important feature of advanced banking business in the world today. Compared to foreign counterparts, China's retail banking is less developed, with a great space for improvement. Many Chinese banks have shifted their focus to retail banking in recent years and the most important for them is how to readjust and improve existing branch networks.Correct site selection is a prerequisite for successful operation of bank branches and of great importance to ensuring their economic benefits and good prospects. However, due to conventional economic mechanisms and business models, existing branch networks were designed blindly and redundantly; they had been decided by administrative superiors, who paid little attention to the role of market forces and applied non-market targeted analysis. As a result, quite a lot branches faced difficulties in their operation.Research on site selection for bank branch network planning in China is still at an initial stage. Now, few studies on this area are well established and there is an urgent need for practical guidance to site selection of commercial bank branches.This paper empirically studies site selection for the CCB branch network expansion project in Ji'nan city and provides a scientific and rational conclusion, based on theories of project evaluation and commercial site selection and an approach of combining both theoretical and empirical analyses and qualitative and quantitative analyses.The paper falls into five parts. The first part, Introduction, deals with the backdrop, significance and current situation of the study, as well as the perspective, approach and innovativeness of the paper. The second, Project Summary and Basic Theories and Procedures for Site Selection, explains the basic theories of site selection and related methods of analysis. The third, Analysis of the Financial Functions of Ji'nan City, illustrates the geographical distribution of the financial sector of Ji'nan city by first reviewing and analyzing the city's economy and urban planning and target clients of banks and then dividing the city in light of financial functions. The fourth, Overall Branch Network Planning of CCB in Ji'nan City and Analysis of the Competition between Banks, works out the plan for readjusting and improving the branch networks of CCB Ji'nan, considering the total number of bank branches in the city, competition between banks, the current branch network planning and the advantages of CCB Ji'nan. The fifth, Empirical Analysis of Site Selection for the Branch Network Expansion Project of CCB Ji'nan, adopts the analytical hierarchy process (AHP) to set up a model for branch site selection and draw a rational conclusion by an empirical analysis of new branches in the city. The final part, Conclusion, sums up the whole text.