The Research On The Special Distribution Of County And Village Banks In Hunan Province

Abstract:The site selection for financial institution counts dynamic social and economic factors. Faced with overwhelming competition in banking market and the blooming in village Banks, we decide the topic for this article. In thorough analysis on the current layout of the village banks, we found the irrationality among this distribution. Layout problems include the uneven regional distribution, the inconspicuousness in layout factors, lack in agricultural branches, the characteristic of county layout, and the indistinct layout patterns of village banks to commercial banks. In order to explain these problems, we apply empirical analysis to the location of county and village banks in Hunan province, from both county decision and site selection respects.Firstly, based on the theory of financial exclusion, this article detects the macro factors for village Banks layout. Collecting data from70counties in Hunan province, we apply logistic model to analyze the layout of the village banks and its financial exclusion background. We found that county layout characteristic earns financial exclusion connotation, at the same time, county layout disconnects traditional economic variables empirically. Secondly, based on the commercial bank location selection theory, considering the irrational phenomenon on rural Hunan province, this paper uniquely and rurally improves the evaluation indexes. Through factor analysis, we generate factors, which in later are used to detect the linear relationship to village banks monthly deposit. The results show that the layout factors are connectedly related to the monthly deposit in village banks, and the traditional economic variables still have no significance on site selection for county and banks. In index system improved of site selection, the site propaganda factor contribute little, and site hardware factor contending the initiator index contributes a lot to the monthly deposit in village banks. This observation partially explains the initiator anomaly of village banks. Finally, According to county site selecting decision and site evaluation model, this paper summarizes the problems on location of village banks, and put forwards suggestions fromrural bank, government, and related rural financial institutions.