The Difference Of Regional Bank Structure And Its Determinants In Henan Province

Regional banking structure has important influence on regional economic development.With the marketization reform of China's financial industry,especially since 2006,China's banking structure has changed greatly,including the continuous expansion of bank assets and the rapid growth of nodes of various banking institutions.However,the existing studies lack the attention and analysis of the differences of regional banking structure on the county scale.County is the basic unit of space for economic,social development and institutional evolution in China,and the rural financial development problem is mainly reflected in the county.The study of regional bank structure differences and changes from the county scale can better reveal the changes in the urban and rural banking structure since the financial market reform.By analyzing the factors affecting the regional banking structure,we can provide policy ideas and suggestions for the integration of urban and rural financial service systems and sound rural financial organization system.Based on the county-scale banking data since 2006 and using Herfindahl-index,coefficient of variation,and geographical detector methods,this study analyzed the differences of regional bank structure and its determinants in Henan Province.The results are as follows.(1)The concentration of the banking industry in Henan Province continuously decreased,and the regional banking structure continuously towards diversification.The diversification of banking structure in counties and county-level cities has been significantly faster than the provincial cities.The differences of regional bank structure continue to expand,and significant differences were found in the types of major banking institutions between urban areas and the countryside.(2)The concentration of banking industry in provinces cities is generally lower,and the structural difference in the banking industry continues to reduce.The main types of banking institutions in the province cities are the state-owned commercial banks,the rural credit cooperatives and the rural commercial bank.There is little difference in the banking structure between province cities,and the lowest concentration of banking in Zhengzhou city.Since 2006,the joint-stock commercial banks and the city commercial banks have increased the number of banking nodes in province cities,and significant diversity was found in the regional bank structure.(3)The differences of regional bank structure are gradually expanding between counties andcounty-level cities.Since 2006,the establishment and expansion of the new-type rural financial institutions and the city commercial banks have accelerated the process of diversifying the banking industry in counties and county-level cities.However,there are differences in the growth of banking institutions in different counties and county-level cities,which has increased the differences in the banking structure between counties and county-level cities.(4)The differences in the banking structure are gradually expanding between the provinces cities and the counties and county-level cities.Province cities are mainly the state-owned commercial banks.The joint-stock commercial banks and the city commercial banks are more likely to establish corresponding banking nodes in provincial cities.However,counties and county-level cities are mainly based on the rural credit cooperatives and the rural commercial banks.The new-type rural financial institutions are more inclined to set up banking nodes in the counties and county-level cities.Therefore,there is a great difference in the banking structure between urban areas and the countryside,and there is still an expanding trend in recent years.(5)Based on the analysis of geographical detectors,there are significant differences in the influencing factors of the banking structure between urban areas and the countryside.Factor detection results show that the initial banking marker structure,regional types,urbanization rate,and loan size are the dominant factors affecting the regional banking structure in Henan Province.The initial banking marker structure,loan size,and retail scale of social consumer goods are the main factors affecting the banking structure of the provincial cities.The initial banking marker structure and urbanization rate are the main influencing factors in the banking structure of counties and county-level cities.In summary,the financial development factor is the dominant factor affecting the structure of the regional banking industry.The results of interactive detection show that for Henan Province and counties and county-level cities,the factors that can maximize the influence of the financial development factor are economic development factor.For provincial cities,the factor that can maximize the influence of the financial development factor are administrative social factor.