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This study investigates whether shareholders of banks and bank holding companies perceive benefits to product and geographic expansion by examining the formation of one bank holding companies and changes in regulations affecting those holding companies. The Bank Holding Company Act of 1956 limited interstate ownership of banks by companies owning more than one bank and restricted the range of their permissible nonbanking activities. However, those companies which owned only one bank were not subject to the Bank Holding Company Act and thus were unrestricted in the types or geographic locations of their nonbanking subsidiaries. Such one bank holding companies (OBHCs) could enter manufacturing as well as offer a full range of securities and investment banking services. [ABSTRACT FROM AUTHOR]

A recent survey (Rhoades, 1977b) of Structure-Conduct-Performance studies in banking lists twelve studies of the effect of concentration on checking-account prices. All twelve rely on proxies for price instead of actual price. Here we evaluate this practice by comparing the three most widely used proxies with the prices actually charged by a sample of 154 Texas banks. [ABSTRACT FROM AUTHOR]

This paper explains a number of banking structure variables in the context of simultaneous profit maximization by oligopolistic firms. Interdependence among firms is characterized a la Hotelling (1929). Demand for bank output is formulated in a spatial context, representing a city or SMSA, so that quantity demanded depends on both price and the distance the consumer must travel. Firms display identical cost functions which are linear in output. Regulatory control of entry is represented explicitly and two firms, at most, enter at a time. Since the entry process is sequential, adjustment paths as well as equilibria are described. Endogenous variables include the number of firms (unit-banking is assumed throughout) in the industry, their location and the price, output and profit of each firm. The price paid for such detail is a degree of complexity that necessitates numerical specification of parameters in order to obtain a solution. [ABSTRACT FROM AUTHOR]

Using pooled cross-sectional time series data collected at the level of 13 geographical regions, this paper investigates the effects of location dependence and unobserved heterogeneity on founding rates of rural cooperative banks in Italy from 1964 to 1988. Parametric and semiparametric models of organizational founding reveal that the organizational population is internally differentiated and that different segments of the population respond heterogeneously to general processes of legitimation and competition. This study emphasizes the importance of identifying the correct level of analysis at which population-level processes operate and of accounting for unobservable factors related to the cross-sectional structure of organizational populations. The findings demonstrate how an ecological approach that incorporates information on the spatial structure of the population can provide a more detailed understanding of the evolutionary dynamics of organizations. [ABSTRACT FROM AUTHOR]

A new computer technique has been developed to aid decisionmakers in rapidly comprehending and using large amounts of information. The authors explain the theory and requirements of computer mapping, and describe a stepwise decision process which developed statewide, multicounty, and intracity maps as part of a retail banking site selection process. [ABSTRACT FROM AUTHOR]

It is generally recognized that banking services are spatially differentiated, and the geographic extent of bank markets is often an important issue in bank mergers and holding company acquisitions. Nonetheless, there have been few attempts heretofore to measure the importance of location in a customer's bank choice, nor have the implications for banking competition been fully considered. We hypothesized a model in which two bank offices' relative shares of the accounts from an area were dependent upon their relative geographic convenience, relative ages, and relative prices. We then estimated the nonprice parameters of this equation using data for small demand deposit accounts for the Atlanta area. Geographical convenience as represented primarily by the office's distance from the area and secondarily by journey to work patterns, proved most important in explaining bank office shares, followed by relative ages of the offices. We also found indirect evidence of the importance of price or quality differences. The strong relationship between bank shares and distance implies that bank service areas are somewhat segmented, i.e., that a bank tends to draw most of its accounts from its immediate area, and that other factors affect but do not break down this pattern. Since this implies that the demand curve faced by individual bank offices is less elastic or competition is less effective than if distance were not an important determinant and the bank's customers were scattered evenly over the area, we conclude that market shares and concentration ratios for any arbitrary region are not reliable indicators of the degree of competition. What are needed are measures of the effect of market structure on the elasticity of individual banks' demand curves and this effect can be estimated using the model of this paper. [ABSTRACT FROM AUTHOR]

The article presents a marketing case study designed to determine the geographic distribution of out-of-town merchants by merchants in Charlotte, North Carolina. Researchers compared the number of total checks drawn against Charlotte banks versus the number drawn against other banks to determine whether checks deposited by retail stores could be used as a measure of in-town versus out-of-town sales. Details related to traffic flow, origin-destination studies, and other factors affecting sales are presented. A map showing geographic sales distribution in Charlotte is presented.

In a recent study, Charles T. Taylor found a significant relationship between the loan mix and the average loan interest rate at individual banks. The regression analysis also showed a negative relationship between bank size (total deposits) and loan interest rates. In addition, an analysis of variance of the regression residuals revealed significant differences between average loan rates at the banks grouped by type of charter, geographic area, and par status. Other categorical variables often used as measures of competition were found to be insignificant. These variables are the number of banks in the city, metropolitan character, and bank ownership type. However, improper specification of Taylor's regression casts doubt on the reliability of the results. [ABSTRACT FROM AUTHOR]

The article discusses the compensatory balance requirements and the importance of these in a commercial banking environment and how different banks build their practices around the strictures. It is found that the requirements are most often found in large banks and for borrowers of sizable loans. It is found that banks of different sizes and locations administer such requirements differently and these can be explained through loan portfolio management and the degree of diversification in the banks' investments.

Islamic finance institutions (IFI) need to understand people's knowledge of the sharia system. Understanding more clearly about this problems, this article has analyzed customer's knowledge and preference about Sharia Brands. The respondents include students and scholars with any kind of profession, such as lecturer, banker, government employee and others, aged between 15 and 60 years. The research concludes that people only know that the Islamic system differs from conventional systems because it is not the permissibility of interest (riba) in the transaction, but they do not understand that there are sharia supervisory board to oversee the IFI's sharia-compliance in its operations. The preferences of selection factors that people liked are because of bank location, because of other's recommendation and because of efficient bank services. [ABSTRACT FROM AUTHOR]

Using branch-level data on public and private US banking institutions, we investigate the importance of branch religiosity in shaping bank risk-taking behavior. Our results show robust evidence that branch religiosity is negatively related to bank risk-taking. This effect persists after controlling for several bank-level and county-level variables that might correlate with religiosity. Moreover, this result is robust to controlling for headquarter religiosity, suggesting that the effect of branch religiosity is additive and not washed out by headquarter religiosity. Overall, our findings document that headquarter religiosity does not capture the full effect of religiosity on bank behavior, as claimed by previous research, but that the religiosity of the geographic area in which the bank operates significantly influences bank behavior. [ABSTRACT FROM AUTHOR]

Although Internet banking is now able to perform many of the functions associated with physical bank branches, these locations still play important roles within their neighborhoods. This is particularly true for low-income, inner-city areas, which often have relatively few traditional banks. This study compares the cases of Milwaukee and Buffalo, both northern 'Rust Belt' cities that have experienced manufacturing and population decline. Using both GIS and statistical analysis at the block group level, we confirm the presence of inner-city 'cold spots' in both cities using statistical measures. We also find that both bank density and distance are significantly correlated with income and other demographic and economic variables. Statistical tests show that banking 'deserts' are poorer and less white than other block groups. Regression analysis shows that for Buffalo, but not Milwaukee, the number of banks in an area is significantly related to income, distance from the CBD, and population density; the vacancy rate is significant while racial makeup is not. [ABSTRACT FROM AUTHOR]

This paper examines the role of 'competitor remoteness'-the weighted average distance of all competing banks to a host country-on the location decision of a foreign bank. It uses unique, bilateral data on 1,199 foreign banks from 75 home countries present in 110 host countries. It finds that, besides bilateral distance, competitor remoteness importantly drives foreign banks' location decisions. The impact of distance and competitor remoteness is stronger for non-OECD home and host countries, when the scale of foreign bank inward and outward investment is limited, and for host countries where foreign banks dominate. [ABSTRACT FROM AUTHOR]

Copyright of InfoM is the property of Belgrade University, Faculty of Organizational Science and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

An introduction is presented in which the editor discusses various reports within the issue on topics including Soviet banking, spetsbanks and its location, and impact of regional bank capacity on growth and economy in 2007.

This study examined the determinants of foreign bank location decisions in Shanghai markets over the period of 1990 to 2009. The growing foreign presence in Shanghai was found to be related to two different policy regimes: Pudong development area foreign enterprise clustering period after China opened Pudong, and "deposit-loan-match principle" implementing period after China joined WTO. The current location pattern was found to be correlated to deposit potential in each district. It is evident that the foreign bank location decisions were influenced by those of domestic banks while the reverse did not hold. These findings provide a valuable platform for theoretical modeling and further analysis. [ABSTRACT FROM AUTHOR]

This paper examines the distribution of mainstream financial institutions (FIs) branches (banks and credit unions) and payday lender outlets in Winnipeg. This is done using historical records for the last thirty years. With statistical testing the article considers whether mainstream FIs and payday loan outlets have a location bias that favours more affluent neighbourhoods at the expense of low-income communities. The results find that mainstream FI branches dropped slightly dur-ing the study period and dropped dramatically in Winnipeg's inner-city. Payday lender outlets first appeared in the late 1990s and experienced rapid growth in the mid 2000s. Statistical testing supported the hypothesis that poor neighbourhoods are underrepresented by mainstream FI branches and overburdened by payday lender outlets. Policy implications point to the need for a more holistic basic banking concept that includes an understanding of the importance of branch location and fringe bank regulations. [ABSTRACT FROM AUTHOR]

The paper models location of banking FDI under volatile demand conditions. In the model, information arrives either through passage of time or though presence in the foreign market. The model is also extended to analyze strategic and simultaneous FDI. The results show that market entry evolves from deterring FDI to partial FDI and only then to lull FDI. The switch to partial FDI occurs faster when banks can gather information only through a presence in the foreign market. The switch to partial FDI does not occur when immediate full FDI enables more efficient production. The results are at odds with models developed for predictable demand conditions in which banks switch straight from del Erring FDI to full FDI. The paper generates an integrated view of the location of banking FDI. [ABSTRACT FROM AUTHOR]

Copyright of EURE is the property of Pontificia Universidad Catolica de Chile and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Along the lower reaches of the Waipaoa River, New Zealand, cross-section survey data indicate there was a 23 per cent decrease in bankfull width and a 22 per cent reduction in channel cross-section area between 1948 and 2000, as the channel responded to increased inputs of fine (suspended) sediment following deforestation of the headwaters in late C19 and early C20. We determined the bankfull discharge within a ~39 km long reach by routing known discharges through the one-dimensional MIKE 11 flow model. The model runs suggest that the bankfull discharge varies between ~800 and ~2300 m³ s-1 and that the average recurrence interval is 4 ± 2 years on the annual maximum series; by contrast, the effective flow (360 m³ s-1) is equaled or exceeded three times a year. The variability in bankfull discharge arises because the banks tend to be lower in places where flood flows are constricted than in reaches where overbank flow is dispersed over a wide area, and because scour has counteracted aggradation in some locations. There is no downstream variation in Shields stress, or in relative shear stress, within the study reach. Bankfull shear stress is, on average, five times greater than the shear stress required to initiate motion. At the effective discharge it is more than twice the threshold value. The effective discharge probably has more relevance than the bankfull discharge to the overall picture of sediment movement in the lower reaches of the Waipaoa River but, because width is constrained by the stability and resistance of the bank material to erosion during high flows that also scour the bed, the overall channel geometry is likely determined by discharges at or near bankfull. [ABSTRACT FROM AUTHOR]

Incompatibility across rival systems can influence incentives to invest in product changes beneficial to the consumer. We investigate this phenomenon in the case of bank ATM networks, where the number of ATM locations is a measure of product quality and surcharge fees serve as an index of incompatibility. Using as a natural experiment the lifting of a surcharge ban in Iowa (and not in neighboring states), we find that the associated increase in incompatibility for Iowa banks caused a substantial increase in the number of ATM locations offered to customers. This effect is larger (in percentage terms) for larger banks. [ABSTRACT FROM AUTHOR]

The study of interorganizational imitation has been an important strand in the recent literature on institutional theory. This paper offers new insights for our understanding of mimetic isomorphism and its reliance on legitimacy: we suggest that legitimacy-based reference groups guide firms in their mimetic behaviour, that firms undertake imitation even against their own ex ante information, and that legitimacy-based imitation contributes negatively to firms' profitability. We examine Portuguese bank branching decisions between 1988 and 1996 and find that banks imitate their legitimacy-based groups, and not only towards ex ante (firm-specific) attractive locations, but also towards unattractive locations; we also find that mimetic branching produces a negative effect on profitability. We conclude that these results show the importance of legitimacy pressures on organization decisions and the tension between the pressure to conform and the pressure to perform. [ABSTRACT FROM AUTHOR]

This article describes a newly constructed data set of all U.S. state banks from 1782 to 1861. It contains the names and locations of all banks and branches that went into business and an estimate of when each operated. The compilation is based on reported balance sheets, listings in banknote reporters, and secondary sources. Based on these data, the article presents a count of the number of banks and branches in business by state. I argue that my series are superior to previously existing ones for reasons of consistency, accuracy, and timing. The article contains examples to support this argument. [ABSTRACT FROM AUTHOR]

Abstract: The Reserve Board Organization Committee decision to locate 12 Federal Reserve Banks is reviewed. Probability choice models estimate a city’s selection probability for a Federal Reserve Bank location. Results of predicted selections show reserve cities were selected for their spatial economic characteristics, including information contained in bankers’ preferences, infrastructure development, population and recent National Banking System growth, rather than Democratic Party politics. The Reserve Board Organization Committee placed Federal Reserve Banks in preeminent financial and commercial centers, and relied upon bankers’ preferences for the remaining non-obvious selections. Given 12 cities were to be selected, the conclusion drawn is the decision was in the public interest. [Copyright &y& Elsevier]

This article tests whether a large state-led bank branch expansion program was associated with poverty reduction in India. The program is the largest branch expansion program undertaken by any single country. After bank nationalization in 1969, the Indian government launched an ambitious social banking program which sought to improve the access of the rural poor to formal credit and saving opportunities. Between 1969 and 1990, bank branches were opened in roughly 30,000 rural locations with no prior formal credit and savings institutions (unbanked locations). An integral element of this program was branch expansion into rural unbanked locations. The paper's main finding is that branch expansion into rural unbanked locations in India significantly reduced rural poverty.

Italy is characterized by strong differences both in the productive and in the financial structure. Small and medium firms tend to concentrate in the so called 'Marshallian industrial district', whose productive system has been thoroughly studied but whose financial features are partially overlooked. This paper aims at investigating how the location of a firm in an industrial district affects its ability to resort to external finance, mostly bank loans. The econometric analysis on a panel of 1700 firms over the 1989–1995 period shows that firms located inside industrial districts have an advantage in terms of financial relations with the banking system: both the cost of credit and the probability to face financial constraints are lower. Nevertheless, the cyclical pattern of this advantage is not in favour of district firms: following the tightening of monetary policy, increases in interest rates on bank loans are proportionally higher for firms inside the district; furthermore, also the advantage consisting in an easier access to credit market disappears after the 1992–1993 recession. [ABSTRACT FROM AUTHOR]

The number of days required to clear a check drawn on a bank in city j depends on the city i in which, the check is cashed. Thus, to maximize its available funds, a company that pays bills to numerous clients in various locations may find it advantageous to maintain accounts in several strategically located banks. We will discuss the problem of optimally locating bank accounts to maximize clearing times. The importance of this problem depends in part on its mathematical equivalence to. the well-known uncapacitated plant location problem. We present a Lagrangian dual for obtaining an upper bound and heuristics for obtaining a lower bound on the value of an optimal solution. Our main results are analytical worst-case analyses of these bounds. In particular we show that the relative error of the dual bound and a "greedy" heuristic never exceeds [(K - 1)/K][sup K] < 1/e for a problem in which at most K locations are to be chosen. Two other heuristics are shown to have worst-case relative errors of at least (K - 1)/(2K - 1) < ½. Examples are given showing that all these bounds can be achieved. We present extensive computational results for these approximations. [ABSTRACT FROM AUTHOR]

We show that bank branching tends to mitigate localized market power by broadening the geographic scope of competition among banks, even though branch banking allows banks to differentiate themselves through their choices of branch locations. Banking services at peripheral locations will be priced more competitively when those locales are served by branch networks. We develop a theoretical model in support of this view and offer empirical evidence. [ABSTRACT FROM AUTHOR]

Focuses on the mathematical properties of the bicriterion programme in a case study dealing with banks. Five basic components of the location-allocation model; Reasons for choosing the spatial-interaction model; Reformulated models and mathematical properties.

Abstract. This study examines the role of major location-specific advantages in the international branch banking involvement of U.S. banks. Using pooled time-series (1976-82), cross-sectional (thirty countries) regression analysis, this study finds that the U.S. business presence in a foreign country has a strong positive effect on U.S. branch banking activity in that country. In contrast, the local market opportunity appears to have no significant effect. These results hold for the entire set of countries, as well as each of five subsets (developed, less developed, European, Latin American, and Asian countries). The openness of the host country to the establishment of new foreign bank branches does affect U.S. branch banking involvement. This effect is most pronounced in the less developed countries, particularly those in Asia. [ABSTRACT FROM AUTHOR]

This article reports that the effectiveness of policies designed to remove inefficiencies in mortgage markets depends upon which condition dominates. This study uses data from 933 commercial banks that participated in the Federal Reserve System's Function Cost Analysis for 1968. In this study, regional mortgage markets are approximated by census regions. The existence of significantly higher gross yields in rural areas does not necessarily imply that the intra-regional flow of funds available for mortgage loans is inefficient. The empirical analysis is conducted in three stages. First, for each census region analysis of variance is conducted test for differences in average gloss yield on mortgages among commercial banks in rural, urban, and combined areas. Secondly, for each census region an analysis of variance is conducted to test for differences in yields on mortgages net of direct lending costs. Finally, average costs of mortgage lending are examined for differences in the rural areas, urban areas and combined areas.

A recent article by Rhoades and Yeats [6] examines the growth characteristics of banks of various size classes, attempts to determine if a consolidation movement is underway in the banking industry, and seeks to ascertain whether the pattern of observed mergers during the 1960-1971 period is conducive to a consolidation movement in banking. In general, the authors' findings confirm earlier research by Alhadeff and Alhadeff [1] showing that large banks tend to grow less rapidly than the banking system as a whole. While the majority of bank mergers during the Rhoades-Yeats' (R-Y) sample period were made by large banks, internal growth by medium size banks apparently was sufficient to offset the impact of the mergers, and led to an overall deconsolidation in banking. The purpose of this comment is to provide insight into the reasons for the R-Y finding that average bank growth rates were lower for banks in the largest size classes ($500 million in deposits and greater) than for banks in the smaller size classes. One possible explanation for the R-Y results is that large, growth oriented banks run into significant regulatory and structural constraints in their attempts to maximize deposit size, or market share. [ABSTRACT FROM AUTHOR]