Determinants of bank branch density: a case study of Slovakia

Boďa, Martin; Čunderlíková, Katarína

doi:10.1108/ijbm-07-2019-0267

Cited by 6 publications

(5 citation statements)

References 43 publications

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“…In Slovakia, it was found that the number of branches in the districts is largely determined by factors related to the degree of economic development, the number of inhabitants and the characteristics of the population, as well as the concentration of certain economic branches. Spatial positioning of bank branches is not random but is planned [15]. Site selection is as important for banks as it is for industrial and commercial enterprises and companies [8].…”

Section: Methodsmentioning

confidence: 99%

Investigating the relationship between quality, loyalty, and personal relationship in the banking sector: An analysis of micro, small and medium-sized enterprises in Serbia

Slijepčević¹,

Popović-Šević²,

Popović-Pantić³

et al. 2022

Ekonomika preduzeća

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The aim of this paper is to examine specific aspects of banking services, from the founding of the company and the first steps of entrepreneurs, through its growth from micro, small to medium-sized enterprises. The quality of the bank's service is directly related to the positive experience of service users, i.e. it depends on the extent to which the bank manages to solve the problem of the entrepreneur. Furthermore, this quality leads to a deeper connection between the bank and the business client, a personal relationship, based on two-way communication and trust, which contributes to building a loyal two-way relationship. In the Serbian market, we examined the experience of 99 entrepreneurs with the services offered by 26 banks. The products are similar; what makes the difference is the marketing of banking services and the positioning of the bank's brand in the consciousness of the entrepreneur as a bank that cares about the client and is ready to further invest in building trust and loyalty. Our findings indicate that the owners of micro-size firms and entrepreneurs located in Belgrade, have comparatively more concerns about the quality of rendered services.

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Section: Methodsmentioning

confidence: 99%

Investigating the relationship between quality, loyalty, and personal relationship in the banking sector: An analysis of micro, small and medium-sized enterprises in Serbia

Slijepčević¹,

Popović-Šević²,

Popović-Pantić³

et al. 2022

Ekonomika preduzeća

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show abstract

“…Since a poor site choice would be expensive and difficult to undo, choosing the right location is seen as a crucial decision. Therefore, significant discrepancies in the availability of financial services or abrupt changes or disparities in the operating conditions to which bank branches are exposed serve as the primary drivers of study on the spatial distribution of bank branches [6].…”

Section: Related Workmentioning

confidence: 99%

Determining Spatial Distribution of the BSP Supervised Banks in the Philippines: A Multivariate Cluster Analysis

Sesgundo,

Aranas

2024

JCFMBS

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The goal of this study was to determine the significant variables that contribute to the number of Bangko Sentral ng Pilipinas (BSP) Supervised banks in the Philippine regions. A model that can predict the number of banks needed in the region was also presented. Spatial distribution of the banks was also analyzed. These analyses determined if the current number of banks in the region is sufficient to provide the financial services needed by the people. The ArcGIS Pro was used to perform Ordinary Least Square Regression, Global Moran’s I and Multivariate Clustering Analyses to the Regional Distribution of BSP Supervised banks in the Philippines and the categorized economic, demographic, labor market and potential market variables from the Philippine Statistics Authority (PSA) in 2020. Results of this study show that the population density, economically active population, functional literacy rate, and families’ ownership of personal computer are the significant factors, which represent every category of the independent variable, that contributed to the number of banks in the region. Using the chosen passing model, the difference between the actual and estimated number of banks was used as the indicator by which regions need more physical banks to promote financial inclusion. Regions X, CAR, and BARMM are the best locations for the future physical bank to be established. Furthermore, the results from Global Moran’s I analysis showed that there is a clustering of high number of banks in the Philippines. There were 7 clusters formed for the number of banks based on population density, economically active population, functional literacy rate, and families’ ownership of personal computer. Among these explanatory variables, population density is the greatest contributor in forming the clusters.

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“…Alamá and Tortosa-Ausina, 2012; Kondo and Harimaya, 2014), and banking competition (e.g. Hannan and Hanweck, 2008; Boďa and Čunderlíková, 2020). Table 1 summarizes the related studies.…”

Section: Literature Reviewmentioning

confidence: 99%

“…, 2002). Empirical studies find mixed results concerning the relationship between banking competition and bank branching decisions (Hannan and Hanweck, 2008; Cohen and Mazzeo, 2010; Boďa and Čunderlíková, 2020; Chen and Strathearn, 2020).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Determinants of branching decisions of State-controlled commercial banks: evidence from China

Sun

Liu

2023

IJBM

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PurposeBranching is one of the crucial strategic non-price actions for banks. Previous studies on the impact of state ownership upon banks focus on bank lending behavior. This paper aims to offer a novel investigation of how state ownership affects bank branching behavior by examining state-controlled commercial banks (SCCBs) in the context of the largest developing and transitional country China.Design/methodology/approachThe two-part model (TPM) is applied to analyze the branching decision process. In the first stage, the dependent variable is the choice of bank branching dynamics and in the second stage the dependent variable is the number of new branches or the number of closed branches. For robustness check, the ordered probit selection model allowing for interdependence of the two stage decisions is also employed.FindingsUsing a unique dataset of bank branches in China, this paper finds that the branching decisions of Chinese SCCBs are driven by both profit motivated factors including population size, population density, income level, financial development and banking competition and politically motivated factors as represented with the proportion of SOEs. As a comparison, branching decisions of joint-stock banks in China are fully determined by profit motivated factors.Originality/valueFirst, this study is the first to explore the effect of state ownership on bank branching decisions, providing a new insight on the literature regarding to the impact of state ownership on bank decisions. Second, this study explores the potential effect of politically motivated factors on bank branching decisions, filling the gap in bank branching literature. Third, this study can contribute to bank branching literature by enriching the limited understanding of how SCCBs make branching decisions. Lastly, this study applies novel empirical strategies to analyze bank branching decisions, including the TPM and the ordered probit selection model.

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Determinants of bank branch density: a case study of Slovakia

Cited by 6 publications

References 43 publications

Investigating the relationship between quality, loyalty, and personal relationship in the banking sector: An analysis of micro, small and medium-sized enterprises in Serbia

Investigating the relationship between quality, loyalty, and personal relationship in the banking sector: An analysis of micro, small and medium-sized enterprises in Serbia

Determining Spatial Distribution of the BSP Supervised Banks in the Philippines: A Multivariate Cluster Analysis

Determinants of branching decisions of State-controlled commercial banks: evidence from China

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