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dc.contributor.authorZhang, Q.
dc.contributor.authorArora, Rashmi
dc.contributor.authorColombage, S.
dc.date.accessioned2021-02-19T18:18:42Z
dc.date.accessioned2021-02-24T13:53:08Z
dc.date.available2021-02-19T18:18:42Z
dc.date.available2021-02-24T13:53:08Z
dc.date.issued2021-07-06
dc.identifier.citationZhang Q, Arora R and Colombage S (2021) The determinants of bank branch location in India: An empirical investigation. International Journal of Bank Marketing. 39(5): 856-870.en_US
dc.identifier.urihttp://hdl.handle.net/10454/18367
dc.descriptionYesen_US
dc.description.abstractBank 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. We present the first study that examines the determinants of bank branching activities in one of the largest developing country India. We employ a unique longitudinal data to study the determinants of bank branch location in India. This data is collected at the state level covering 25 Indian states for the period 2006 to 2017. We employ Poisson regression that are better suited for modelling counted dependent variable. First, 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. First, 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, we 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. First, while existing studies largely focus on developed countries, studies devoted to developing countries are scant. To the best of our knowledge, we have not come across any study that investigates the determinants of bank branch location in India, so we reasonably believe that ours is a first-of-its-kind. Second, our 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, we employ Poisson regression that are better suited for modelling counted dependent variable.en_US
dc.language.isoenen_US
dc.relation.isreferencedbyhttps://doi.org/10.1108/IJBM-07-2020-0395
dc.rights(c) 2021 Emerald Publishing Limited. Full-text distributed under the Creative Commons CC-BY-NC license (https://creativecommons.org/licenses/by-nc/4.0/legalcode)en_US
dc.subjectBank branchen_US
dc.subjectIndiaen_US
dc.subjectFinancial inclusionen_US
dc.subjectFinancial exclusionen_US
dc.subjectPanel dataen_US
dc.subjectPublic policyen_US
dc.titleThe determinants of bank branch location in India: An empirical investigationen_US
dc.status.refereedYesen_US
dc.date.Accepted2021-02-19
dc.typeArticleen_US
dc.type.versionAccepted manuscripten_US
dc.date.updated2021-02-19T18:18:50Z
refterms.dateFOA2021-02-24T13:54:52Z
dc.openaccess.statusGreenen_US


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