Bank Branch Location Research Articles

Food Banks as a "Treasure Trove": Users' Experiences of a Western Australian Food Relief Organization.

Food banks are providing crucial relief as food insecurity increases worldwide. While these services are essential for vulnerable populations, there is variability in foods available and users may experience poor nutritional quality, and an overabundance of discretionary foods, contributing to public health risks including overnutrition and obesity. Understanding how customers perceive food availability, variety, and quality is important to inform relief services and health interventions. This study reports the findings of a convergent parallel mixed-methods investigation of user experiences and perceptions of food availability, variety, and quality at a major food bank in Western Australia. Food bank customers (N = 207) at a food bank branch and mobile van locations completed a survey, with an option to complete a subsequent semi-structured interview (n = 15). Approximately 80% of the survey sample had low (48%) or very low (30%) food security, half of the sample had been using the food bank for longer than 6 months, and 77% reported the food bank as their first choice for food. Three-quarters (77%) reported financial barriers to a balanced diet in the past twelve months and described how limited availability and variety complicated shopping. Interviewees explained complex perceptions of these issues, including favouring healthy food while considering discretionary food as a "luxury" that enhanced their quality of life. Our findings suggest that food bank users experience barriers to maintaining a balanced diet, encounter variable supplies of healthy and nutritious foods, and have concerns about the impacts of frequent discretionary food consumption. These findings have implications for public health promotion.

Data envelopment analysis for identification of bank branches appropriate locations in terms of their efficient operation

One of the main banking activities is the branch network. It provides the effective banking, the profitability. Choosing the right location of branches is very important for the bank effective operation. Random or intuitively locations can have a negative impact on key performance indicators in the future. The correct and thoughtful choice of the bank branch location ultimately determines its maximum efficiency. The paper concerns with the determining of the bank branch location in terms of thorough mathematical calculation and many factors influencing bank activity. We developed a special calculation method using the DEA (Data Envelope Analysis) methodology, considering financial, branch location, location features, etc. The paper dwells on the issue of one large branch effectiveness comparing to several smaller branches covering a wider consumer area on the example of the branch on A. Sharifzade street, Baku, Azerbaijan. Indeed, it is important to consider the location in terms of its geolocation and landscape. However, one of the main issues is expediency of establishing one large or several small branches in densely populated areas. Moreover, it is necessary to take into account the infrastructure to improve the bank performance. To consider this issue, we use both hypothetical and statistical data of Capital Bank. It is one of the largest banks in Azerbaijan. Also it has a large network of branches. The article examines expediency of establishing one large or several small branches in the area close to the existing branch of Capital Bank on A. Sharifzade street. The efficiency of the current operating branch was compared with the total efficiency of virtual branches in several combinations. We analysed the indicators of the Inshaatchylar branch and virtual branches in different combinations in different locations in accordance with DEA CRS (Constant Return to Scale) method. Additionally, we determined the effectiveness of both the Inshaatchylar branch and virtual branches in various combinations. Thus, the highest score is the most effective one.

Competition between arm’s length and relational lenders: Who wins the contest?

Using geo-coded data with the location of bank branches and borrowers, we study the effect of bank competition on lending. The impact of competition depends on the incumbent’s and the entrant’s lending technologies. The addition of a relational lenders’ branch increases the probability of exit of and reduces the size of loans issued by all types of incumbents, while the opening of a branch by an arm’s length lender only affects the probability of exit from arm’s length incumbents. We believe relational lenders can compete more effectively by extracting and using private information unavailable to arm’s length entrants.

Does bank competition curb corporate pollution emissions? Evidence from the geographical location of bank branches.

This study interprets enterprise pollution reduction from the perspective of the financial market. Using data on Chinese industrial enterprises, this paper tests the impacts of bank competition on enterprise pollution emissions. The findings show that bank competition has a significant total effect and technique effect on pollutant reduction. Bank competition reduces pollutant emissions by easing financing constraints, increasing the implementation of internal pollution control, and improving the efficiency of bank credit resource allocation. Further research shows that both bank type and bank branch level could moderate the pollution reduction effects and such effects vary a lot under different environmental regulation intensities. We expand the relevant literature on the economic consequences of banking competition and have certain theoretical and practical reference significance for the future reform of the banking industry.

GIS Based Multi-Criteria Decision Analysis for Locating Bank Branches

In banking industry, optimum location of the bank branch plays an important role in ensuring the success of the bank. It is one of the most important decision making processes. This issue is highly important because of the vibrant competition, limited budgets and high customer expectations .This study’s objective is to provide a hybrid model for selecting optimal site location using available data sources and well accepted decision models, specifically Analytic Network Process (ANP) and Geographic Information System (GIS).The process identified the most commonly used criteria for bank branch location consideration through literature review yielding demographics, competition, transportation, access to public facilities. Criteria and sub-criteria weights were quantified through pair-wise comparison using expert judges, via ANP. The database created for the study area (Khartoum Locality) includes data about demographics, competition, transportation, access to public facilities available in the area. With the help of Esri’s ArcGIS software through using the weighted overlay analysis tool we have identified suitable sites of new bank branches .The results showed five optimal locations for new bank branch in Khartoum locality; location near Madani St, location close to Bashir Elnefedi St, location at Firdous East Square 8, and two other sites in Khartoum West (Shajra Avenue). For the conclusion, these results show the efficiency and applicability of the proposed integrated method.

Multi-Performance Estimation for Deploying Bank Branches Based on a Multi-Task Attentive Tree-Enhanced Model

Selecting the optimal location for a new bank branch is challenging but worth studying due to its importance to growing a successful business. Bankers have been devoting a lot of effort to this issue. In recent years, the proliferation of multisource data in smart cities has called for more need for data-driven optimal location selection. Previous studies usually focus on mining different features and processing these data through domain expert knowledge. However, they fail to discover potential complicated factors interactions. Besides, most of these studies only use a single indicator to evaluate the candidate locations, which overlooks a lot of information, resulting in an inaccurate evaluation. In this study, we propose MATE, a Multi-task Attentive Tree-Enhanced model, to simultaneously predict multiple performance indicators of a bank branch's location. Our model takes advantage of the tree-based model, which can effectively extract cross features and provide interpretability according to inferred decision rules. In addition, we designed the financial embedding module and attentive interaction blocks, allowing MATE to obtain more complex and diverse features. Finally, extensive experiments on real-world bank datasets demonstrate the effectiveness of our method, which outperforms baseline and state-of-art methods from 17% to 41%.

How bank‐specific factors affect access to financing for small and medium enterprises: Evidence from an emerging economy

AbstractIn this study, hypotheses were tested regarding the impact of bank size, ownership structure, branch location, and distress condition on access to financing for small and medium‐sized enterprises (SMEs). The empirical analysis was conducted using data obtained from scheduled banks of Bangladesh (banks listed under the Bangladesh Bank Order, 1972) and SMEs operating in Bangladesh. The results suggest that SMEs in Bangladesh have greater access to financing when their application for financing is made to a small bank, a domestic private bank, or a rural branch. Bank distress appears to have a negative impact on the provision of financing to SMEs. SME access to financing is also lower if the application is made to a state‐owned bank or a foreign bank.

Access to Credit and Green Innovation

Starting with the natural credit relationship between financial institutions and enterprises, this paper examines the relationship between distance-based access to credit and green innovation by using the data of financial licenses and listed enterprises. Based on the resource dependence theory, the authors use the geographical location of bank branches and enterprises to build micro-level credit access indicators. It shows that enterprises with better access to credit have more motivation to carry out green innovation. Taking the number of branches of the Bank of China in 1937 as an instrumental variable, it still supports the above results. Its influence lies in the reduction of financing constraints of enterprises. This paper further discusses the impact of green finance and digitization. The development of green finance and digitization could replace the benefits of distance-based access to credit. Combined with the transformation process of traditional banks in the future, this paper puts forward some policy suggestions to promote green innovation and low-carbon development.

Design and implementation of an augmented reality mobile application for navigating ATM counters (AR-ATM)

PurposeThis paper aims to bring in augmented reality (AR) into navigation systems to rectify the issues mentioned. This paper proposes an AR enhanced navigation system for location automated teller machine (ATM) counters (AR-ATM) and branches of banks based on user’s choice. Upon selecting the ATM, the navigational path to the destination is drawn from the current location, thereby the user can reach the ATM through the optimal path.Design/methodology/approachTraditional navigation systems require users to map with the real world environment as and when required and also may lead to incorrect path due to minor difference in distance. The traditional navigation systems’ also does not take into consideration the ergonomics and safety of the user.FindingsIn this system, a camera lens is used, which is directed down the street at eye level and the application displays the location of ATMs and bank branches and also provides information about the locations like distance and time through the AR superimposed object.Originality/valueThe application also provides indoor navigation, especially in a multi-storeyed building. Experiments are performed on smartphones that support AR, and the results are promising with no lag in time frame of the real object and virtual object. To determine the factors that regulate the suggested AR tracking mechanism, a quantitative evaluation of the experimental data is also performed. The testing of implemented AR-ATM from the standpoint of end-users is undertaken to evaluate real-time usage comfortability, and the results have been determined to be extremely satisfactory.

Determinants of Bank Closures: Exploring the Relationship between Neighborhood Characteristics and Bank Branch Locations

Retail Banking in Canada has experienced significant changes perpetuated by both digital trends in retail and changes in consumer demand. These changes have resulted in significant decreases in client interactions with physical branches in favor of digital platforms (online, mobile, phone banking). As the “Big Five” Canadian banks pursue network optimization strategies focused on reinvesting savings into their digital channels, branch closures will accelerate, resulting in market gaps. Thus, the central aim of this study is to understand the relationship between neighborhood characteristics (built environment and socio-economic) and bank branch locations. Using the city of Toronto as a case study, this research addresses three objectives: (i) to identify neighborhoods underserviced by the “Big Five” Canadian banks; (ii) to examine the spatial relationship between neighborhood characteristics and branch locations; and (iii) to quantify the key neighborhood characteristics linked to branch locations. This study finds that financial exclusion continues to be associated with local dynamics of physical topography, road network, demographics, and socio-economic status. While financial exclusion is becoming a growing area of concern for policy makers, this research finds that access to affordable financial services still proves to be an issue that requires attention.

Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches

AbstractBased on the geographic coordinates of bank branches and firms, this study analyzes the impact of firm‐level bank competition on corporate green innovation and its underlying mechanisms. The findings of this study are mainly as follows. First, bank competition promotes corporate green innovation by reducing transaction costs, increasing the possibility and quantity of firms applying for green patents. Second, bank competition increases the share of green innovation while reducing the share of nongreen innovation. Third, environmental regulation strengthens the promotion effect of bank competition on corporate green innovation, and the strengthening effect is greatest when environmental regulation is between its 50th and 75th quantile. The proportion of state‐owned banks weakens the promotion effect of bank competition on corporate green innovation. This paper is helpful to understand the impact of the banking system on sustainable economic development.

Measuring Spatial Distribution in the Banking System in Hungary

Over the past decade, due in part to the global economic crisis, a significant part of the bank branches have been closed in the European banking system, but in Hungary this proportion has been significantly higher than the European average. Therefore, the aim of the present study is to explore what aspects of commercial banks are taken into account when deciding where to be present within bank branches. This will also reveal the spatial dimension of public access to financial services. The present study seeks to answer the question of which socio-economic factors and in what form they affect the spatial structure of bank branches. The settlement-level examination can also provide additional indication of which settlements may be affected by further bank branch closures. Linear regression based on Ordinary Least Squares (OLS) parameter estimation was used to explore the factors influencing the location of bank branches. In addition, the possible clustering of bank branches was observed, i.e., whether spatial autocorrelation was present at certain stages of the analysis. Geographically Weighted Regression (GWR) was also estimated in the present study. Based on the results of the research, the resident population, the proportion of enterprises per capita, the average income, the number of neighbouring bank branches and the type of settlement all proved to be significant factors that may encourage decision-makers to establish a bank branch.

Financial Development and Micro-Entrepreneurship

AbstractDoes financial development facilitate micro-entrepreneurship? Using randomized surveys of over 1 million Indian households and bank-branch location as predetermined by government policy, we find that access to finance shifts workers from informal micro-entrepreneurship into formal employment. Financial access reduces the likelihood of being self-employed but benefits micro-enterprises with employees, as well as formal firms. Using data on 400,000 firms, we find that in districts with more banks, firms have higher loans, productivity, employment, and wages than firms in less banked districts. This evidence suggests a labor-market mechanism by which financial development facilitates growth: by shifting workers from unproductive micro-entrepreneurship into productive employment.

The determinants of bank branch location in India: an empirical investigation

PurposeBank branching plays a significant role in a wide range of economic activities. Existing studies on determinants of bank branching activities largely focus on developed countries; studies devoted to developing countries are scant. The purpose of this paper is to examine the determinants of bank branching activities in one of the largest developing country India.Design/methodology/approachThe authors employ a unique longitudinal data to study the determinants of bank branch location in India. These data are collected at the state level covering 25 Indian states for the period 2006–2017. The authors employ Poisson regression that are better suited for modeling counted dependent variable.FindingsFirst, region and bank specific factors such as size of population and bank deposits influence location of bank branches. Second, the relationship between these factors and branch locations is heterogeneous across different types of banks and across states with different business environments.Practical implicationsFirst, from the view of banks, considering the factors of branch location are crucial in order to set out branching strategy. Irrespective of policy measures aimed at promoting financial inclusion in India, the authors show that banks consider economic activities in the region in locating their branches. Second, from the view of policy makers and regulators, such branching strategy could potentially contribute to financial exclusion. As a result, population in the less developed regions may be excluded from accessing financial services. Hence, policy makers and regulators should take into this account when formulating policies aimed at promoting financial inclusion.Originality/valueFirst, while existing studies largely focus on developed countries, studies devoted to developing countries are scant. To the best of our knowledge, the authors have not come across any study that investigates the determinants of bank branch location in India, so the authors reasonably believe that this study is a first-of-its-kind. Second, the study provides a new perspective concerning how regional and bank specific factors influence banks of different ownership in locating branches. Third, while traditional regression used to be a method of choice among early studies, the authors employ Poisson regression that is better suited for modeling counted dependent variable.

Low Interest Rates and the Distribution of Household Debt

We study how changes in interest rates affect the borrowing of households and the distribution of debt within the population. In a model of household borrowing with credit constraints and endogenous house prices, we show that less constrained households with more pre-existing housing wealth increase their borrowing most when interest rates fall. We then use unique loan level data on the universe of household credit in Belgium to document a shift in the distribution of debt over age, with older households borrowing more as interest rates fell in the last decade. First-time borrowers, who are more likely to be constrained, do not contribute to the rise in household debt. To identify the elasticity of household debt to the interest rate, we use regulatory data on foreign exposures of banks and on the location of bank branches. We find that a 1 percentage point fall in the interest rate is associated with a 15% growth in household debt.

SMEs and their bank choices: trust-related factors or economic calculations?

PurposeThe authors investigate the factors affecting the decision of small and medium-sized enterprises (SMEs) to do business with either small local banks or large commercial banks.Design/methodology/approachWe combine various data sources on Polish SMEs, including their financial statements, county-level data on SMEs' local environment, information about bank branch locations, as well as a new survey on the specificity of bank–firm relationships. We employ the logit and Tobit models.FindingsSMEs' bank choices and the length of a bank–firm relationship are more strongly associated with trust-related factors, rather than transactional ones. SME managers motivated by trust-related factors are more likely to choose local lenders and maintain long-term relationships with them. However, as firms grow and mature, SME managers lean toward banks adopting transaction-oriented policies.Research limitations/implicationsWe could have drawn a more detailed picture of the bank selection process had we been able to compare the traits of a firm's current and previous banks.Practical implicationsThe study shows that the features of a bank's offer, including product prices, have limited potential in shaping long-term relationships between banks and SMEs.Originality/valueThe topic of bank selection by SMEs has not been thoroughly investigated in the case of Central European countries. We address this gap by comparing two types of potential drivers of bank selection: trust-related factors and a set of purely economic (transactional) motives.

Effect of Risk Analysis in Marketing Aspects Against with Determination Mega Bank Branch Locations

Banks have made dramatic changes to risk management in the past decade—and the pace of change shows no signs of slowing. Risk management in banking has been transformed over the past decade, largely in response to regulations that emerged from the global financial crisis and the fines levied in its wake. While Customer expectations are rising in line with changing technology. This study aimed to find out the relationship between risk on the marketing aspect of Mega Bank’s Branch Office Opening. The case study was taken precisely in the Palu province of Central Sulawesi. This research was conducted using qualitative methods. This analysis describes more about the Mega Bank branch office opening. After that analisis will associated with the risk in the marketing aspect when branches have been opened. In the implementation, the Mega Bank get some signs there will be a risk, so the Mega Bank management should perform analysis early before creating business feasibility study. The data used are deposits, loans, market share and internal. The data coming from Indonesia Bank, Badan Pusat Statistik, Mega Bank internal data and other supporting data.

INFLUENCE OF BANK STABILITY ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN SOUTH SUDAN

Purpose: The purpose of the study was to examine the influence of bank stability on the financial performance of commercial banks in South SudanMethodology: The study was guided by the CAMEL model metrics in measuring stability and its influence on the financial performance of commercial banks measured by ROA and ROE. The study was primarily grounded on the CAMEL model. The study further adopted the positivism philosophy which guided the research. The research employed a descriptive research design. The population for the study was 24 commercial banks in south Sudan from which the research targeted one senior manager. The research relied on a mixed methodology which encompassed both quantitative and qualitative data. Secondary data was collected for the period 2012-2017 from audited annual financial reports of individual banks and from the Central Bank of South Sudan reports while primary data was collected by use of a semi-structured questionnaire. The collected data into SPSS 23 for subsequent descriptive and inferential statistical analysis.Results: The correlation tests indicated a strong positive effect of asset quality on the financial performance of commercial banks ( r=0 .784); a strong positive effect of management efficiency (r= 0.758) and liquidity (r=0 .620).Unique contribution to theory, practice and policy: The study recommends that at the bare minimum the management of commercial banks should benchmark with industry experts on how to enhance their services and product offering to better their asset quality scores. Further the study recommends that banking institutions that have shied away from lending activities should reconsider the potential benefits that may accrue from undertaking lending activities. The study therefore recommends that banks should be encouraged to look beyond local market and strategically expand their operations to other geographical markets and sectors of the economy. Location of bank branches is strategically paramount if banks must maximize return on investment.

Does Bank Competition Alleviate Financing Constraints in China? Further Evidence From Listed Firms

ABSTRACTThis article studies the impact of structural changes in China’s banking sector on the financial constraints on Chinese listed companies’ ability to finance their investments. Using information on the location of bank branches of all Chinese banks, we find that growing competition among banks reduces financing constraints on listed firms. We also show that the emergence of joint-stock commercial banks and regional commercial banks has played a major role in alleviating financing constraints on enterprises, partially due to the weakening of the monopolistic position of state-owned commercial banks. Our findings are based on an analysis of the investment behavior of Chinese listed companies over the period 2000–2015. The results lend support to policies that would further relax regulations on entry into the banking sector.

A Tabu Search Algorithm for Multi-Period Bank Branch Location Problem: A Case Study in a Turkish Bank

Banks need to open new branches in new sites as a result of increase in the population, individual earnings and the growth in national economy. In this respect, opening new branches or reorganizing the locations of current branches is an important decision problem for banks to accomplish their strategic objectives. This paper presents a decision support method for multi-period bank branch location problems. Our aim is to find bank branch location based on transaction volume, distance between branches, and cost of opening and closing branches. The proposed method not only develops an Integer Program and a Tabu Search algorithm to find the exact places of branches but also presents a structuring method to identify the related criteria and their importance. We demonstrate the effectiveness of the method on random data. In the final stage, the method is applied in a Turkish bank’s branch location problem considering the current and possible places of the branches, availability of the data, and the bank’s strategies for a four-year strategic planning.