Location Choice Research, Cross-regional Development Of Small And Medium-sized Commercial Banks

The small and medium-sized commercial bank is a significant component of Chinese financial system. It can be referred as a group including mainly urban and rural Credit Cooperatives, joint-equity commercial banks, and lots of non-bank financial institutions. As a fact, small and medium-sized bank is far weaker than the four state-owned commercial banks., however, it is still active in the entire economic area because of its specific vigor and vitality. Its importance can be interpreted as following:to serve for small and medium enterprises, to promote effective regional economic growth, increasing employment opportunities, to maintain macroeconomic stability and sustained growth.Nonetheless, small and medium-sized commercial banks are still facing competitions both from inherent shortage and exogenetic restriction after the accession of China to the WTO. The policy about the commercial banks has become more liberal in recent years, which urges the small and medium-sized commercial banks to break the geographical restrictions and to operate in another region. Since the policy has become liberal, it is essential to answer the question, how to choose the proper regions and cities for he small and medium-sized commercial banks.Hence, this paper will attempt to demonstrate that the cross-regional development is necessary for small and medium-sized banks. Firstly, it will elaborate the motive and challenge of cross-regional development. Secondly, the article will also expound the route of development and the current situation of cross-regional development. Further, on the basis of absorbing advanced theory and experience of experts and scholars, the method of combining the theory analysis with case study will also be applied. We use Fuzzy mathematics as the basic method, and introduce a fuzzy comprehensive evaluation model to build small and medium-sized banks trans-regional development location selection factors index system, we select zhejiang Chouzhou commercial Banks as empirical research object. On the basis of Analytic Hierarchy Process was used to calculate weight of all levels'appraisal index, the two stage Fuzzy Comprehensive Appraisal Model was handled to carry through the alternative cities. As a result, the feasibility and maneuverability of Fuzzy Comprehensive Appraisal Model was testified, which offered the reference to perfect Appraisal System from the angle of location choice, and provided the support of theoretical and technical tool to the cross-regional development of the small and medium-sized commercial banks.