The Construction And Application Of The Evaluation Model Of Commercial Bank’s Network Location

With the acceleration of China’s financial reform process and the processing of the interest rate marketization, competition among commercial banks has become more and more intense. The role of the distribution of branches for improving the bank operational efficiency is growing. To some extent, the supervision of the site selection of banks under the new situation, is a prerequisite for commercial bank to attain a competitive advantage. And the evaluation of the bank alternative locations is important to the location determining. Compared with the foreign researches, there are relatively few in our country on the evaluation of bank alternative locations. Therefore, the research on the evaluation of the site selection of commercial banks is of great theory meaning and realistic meaning.This paper takes the evaluation of the site selection of commercial bank as the research object, and it explains the research methods and related theories of the commercial bank site selection. Based on analysis of the influencing factors of commercial bank outlets location and the six principles of evaluation index, it establishes evaluation index system of commercial bank network location. Thisindex system is consisted of 5 first grade indicators of economic factors,environmental factors, financial environment, demographic factors, traffic factors and 15 second grade indicators. According to the evaluation index system, a model of the combination of TOPSIS and GRA based on the combined weights is built. The model adopts the entropy weight and analytic hierarchy process to calculate the weights of evaluation indexes, using TOPSIS and GRA to calculate relative closeness coefficient, realizing the evaluation of the commercial bank alternative locations.After the model is complete, this paper analyzes the relocation case of Luoyang X branch of China Construction Bank, evaluating the four alternatives by using the evaluation model. According to the results of the evaluation, outlet in Tongji road and zhenghe road intercharge is the best(relative closeness coefficient of 0.59). This is in accordance with the fact that the outlet location in the commercial center, and numbers of communities around it, and the commercial environmental is much better than other place. Finally, by comparing the operating situation of X branch before and after relocation, the science and rationality of the evaluation model of the combination of TOPSIS and GRA based on the combined weights are verified. At the same time, the calculation result shows that in the evaluation index system, the economic factors(weight of 0.38) and financial environment factors(weight of 0.18) are important in the five first grade indicators. Through the analysis of the case, the feasibility of the evaluation model is proved, this article provides a reference forthe evaluation work of the commercial bank alternative locations.