Regional differences in bank office service accessibility: an entry approach
AbstractStructural changes in retail banking markets and development of remote access technologies have reduced the number of bank branches in many developed countries. That makes close-downs of bank branches and service accessibility in rural/peripheral regions interesting topics of public discussion. This paper uses an empirical entry approach in order to analyze whether the peripheral regions have suffered from the development branch networks in general, or are some specific regions faced more closedowns that one can expect? The analysis shows that there are some differences between the regions in accessibility of the services measured both by the number of bank groups and number of branches located in the municipality. Commutation directed to the municipality increased the accessibility as well as the increase in average taxable income. These characteristics are typically related to the local centers but also the administrative city-status had additional positive effect. When it comes to the development of accessibility, the analysis shows no differences between the regions.
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Bibliographic InfoPaper provided by Aboa Centre for Economics in its series Discussion Papers with number 42.
Date of creation: Jan 2009
Date of revision:
banking; accessibility; regional differences; technological development; concentration;
Find related papers by JEL classification:
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-02-22 (All new papers)
- NEP-BAN-2009-02-22 (Banking)
- NEP-GEO-2009-02-22 (Economic Geography)
- NEP-URE-2009-02-22 (Urban & Real Estate Economics)
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