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The results of a study on the cost efficiency of expanding and marketing bank services through branching rather than through the formation of new banks are given. Using detailed cost and bank service output data from a large sample of bank branches across Canada, several issues of interest to bank management and marketing officials are addressed. The evidence presented indicates that some Canadian banks may not be benefiting fully from their ability to rationalise their activities. Retail and commercial banking branches operate according to different technologies for producing financial products and services. Small commercial branches show less potential for economies of scale than retail branches. However, this potential does not appear to shrink as rapidly as it does for retail branches. Finally, both retail and commercial branches show benefits from specialisation. As a result of these technological characteristics, banks may be well advised to maintain their marketing strategy of segregating their retail business from commercial business.

Scholarly research has increasingly emphasised the need for more research that provides fine-grained empirical accounts of how context plays a role in sensemaking. The purpose of this paper is to provide an in-depth look at how broader institutional context shapes the sensemaking of organisational change in a novel empirical context of a Pakistani commercial bank.

A qualitative inductive case study of a commercial bank using interviews and archival material.

Actors make sense of an organisational change initiative by accessing broader societal institutional logics when the field-level organisational logics are not plausible. The consequences of such frame switching may include the provocation of emotionally charged perceptions of politics and moral valuations of legitimacy.

This study is based on a single organisational case study in a particular national context.

This study urges organisational change leaders to consider the role of informal interpersonal relationships and culturally shaped, and emotionally charged, perceptions of change among the change recipients, beyond the technical considerations of the industry concerned. Instead of just focussing on official interaction and top-down communication, along with creating top-level “guiding coalitions” to manage change, organisational leaders need to be sensitive to informal channels at the lower rungs of the organisation to pick emotional reactions of change recipients.

The study contributes to the literature on sensemaking of organisational change by showing how the institutional context, a neglected factor in the literature, impacts sensemaking. The study also contributes to the empirical literature on microfinance (MF) by providing an in-depth account of a commercial bank that introduced MF as a product line.

Many states still limit or prohibit commercial bank branching. In addition, the McFadden Act prevents banks from branching across state lines. It has been suggested that anti‐branching laws inhibit competition in the banking industry. This follows from the notion that bank markets are localized, and that anti‐branching laws prevent banks from penetrating local markets adjacent to their main offices. Two interesting hypotheses arise from this conjecture. First, do banks operating in unit‐banking states have a profit advantage over their counterparts in states that allow state‐wide branching? And second, is there any significant difference in profitability between banks in limited‐branching states and banks in state‐branching states? In other words, are there diminishing returns to branching deregulation? Research reported in this paper answers these questions.

Branching is one of the crucial strategic non-price actions for banks. Previous studies on the impact of state ownership upon banks focus on bank lending behavior. This paper aims to offer a novel investigation of how state ownership affects bank branching behavior by examining state-controlled commercial banks (SCCBs) in the context of the largest developing and transitional country China.

The two-part model (TPM) is applied to analyze the branching decision process. In the first stage, the dependent variable is the choice of bank branching dynamics and in the second stage the dependent variable is the number of new branches or the number of closed branches. For robustness check, the ordered probit selection model allowing for interdependence of the two stage decisions is also employed.

Using a unique dataset of bank branches in China, this paper finds that the branching decisions of Chinese SCCBs are driven by both profit motivated factors including population size, population density, income level, financial development and banking competition and politically motivated factors as represented with the proportion of SOEs. As a comparison, branching decisions of joint-stock banks in China are fully determined by profit motivated factors.

First, this study is the first to explore the effect of state ownership on bank branching decisions, providing a new insight on the literature regarding to the impact of state ownership on bank decisions. Second, this study explores the potential effect of politically motivated factors on bank branching decisions, filling the gap in bank branching literature. Third, this study can contribute to bank branching literature by enriching the limited understanding of how SCCBs make branching decisions. Lastly, this study applies novel empirical strategies to analyze bank branching decisions, including the TPM and the ordered probit selection model.

This study examines the effects of foreign branch activity on commercial banks in the Central, Eastern, and Southeastern European countries for the period 1995–2015. The author shows that more foreign bank branches are present in countries that have higher taxes and regulatory restrictions on bank activity. The increased activity of foreign bank branches adversely affects lending by foreign banks, and to a lesser extent, that of state-owned banks. The author attributes this finding to the fact that foreign bank branches and foreign banks compete for the same type of clients, namely, multinational corporations.

The results of a first attempt in Hong Kong to set up a systematic procedure to search for profitable retail locations for setting up branches of commercial banks are reported, using a local Chinese bank as an example. It is possible to identify customer profiles, chart trading area patterns, create a market share estimation model and calculate the profitability of possible areas for setting up a new branch in order to develop a priority list for consideration in retail branching. Undertaking such research in developing countries is quite different from that in developed countries, due to the lack of data and research facilities. Experience from this attempt should be instructive to banking practitioners working in other newly industrialised countries.

The purpose of this paper is to examine the impact of bank branch location on the likelihood of bank failure during the most recent financial crisis.

This paper estimates the probit regression to identify the causes of bank failures and attempts to determine the role of branch location in bank performance.

Using data from failed and surviving banks in Georgia and Florida, this paper finds that diversifying the balance sheet and operating in more competitive markets reduced failure rates, but branching intensity, measured by number of branches and distance of branches from the home office did not significantly reduce the probability of failure. This suggests that, at least in today ' s market, it is not important to bank stability to have a branching network a significant distance from the home office.

This paper carefully considers the role of branch location in the likelihood of bank failure during financial distress. As such, it contributes to the historical policy debate regarding regulation prohibiting or minimizing banks ' ability to branch. It also contributes to our understanding of how banks structure their branching networks in the contemporary banking environment.

The purpose of this paper is to examine the efficiency and productivity of a Greek bank's branches.

The sample consists of 458 branches of a Greek commercial bank, operating in 13 regions of Greece over the period 2002‐2005, a total of 1,795 observations. Data envelopment analysis was used to explore the efficiency and productivity of the branches. Then, fixed and random effects models were used to determine the impact of internal and external factors on the efficiency and productivity scores.

The results indicate that the branches in the sample could have achieved improved overall performance during 2002‐2005. Also, that the inclusion of loan loss provisions as an input variable increases the efficiency score, but for the total factor productivity (TFP) change, the results are mixed. The second stage regressions indicate that both the logarithm of personnel and the logarithm of income per capita in the local market have a significant impact on efficiency, while the loans to total assets ratio has a significant impact on pure technical efficiency only. When the various productivity change measures were regressed over the explanatory variables, it was found that the logarithm of per capita gross fixed capital formation has a positive and statistically significant impact on all measures. Also, that the return on assets, the loans to deposit ratio, the logarithm of personnel, and the logarithm of income of per capita, all have a positive and statistically significant impact on overall efficiency change.

This paper is the first study on Greek branches which examines the impact of market conditions. It examines the impact of risk‐taking on the efficiency of the branches and examines the productivity growth of the branch network using the Malmquist TFP index.

This paper aims to empirically examine the influence of macroeconomic and socioeconomic factors on improving financial inclusion in India, with a specific focus on two distinct indicators of financial inclusion.

This study has used a time-series data set covering the years 1996 to 2022, using a nonlinear autoregressive distributed lag methodology. This approach allows for the examination of both short- and long-run effects of key macroeconomic and socio-economic indicators, including GDP per capita growth, remittance inflows and the income share held by the lowest 20% of the population on the growth of two financial inclusion indicators: the number of commercial bank branches and ATMs per 100,000 adults.

Model-1 investigates how commercial bank branch growth affects financial inclusion. Positive remittance inflow growth and a rise in the income share of the bottom 20% both lead to increased financial inclusion in both the short and long term, with the effects being more pronounced in the long run. Conversely, negative effects of remittance inflow growth and a decline in GDP per capita growth lead to reduced financial inclusion, primarily affecting the long run. Focusing on ATM growth, Model-2 reveals that positive remittance inflow growth has the strongest impact on financial inclusion in the short term. While income share growth for the bottom 20% and GDP growth also positively influence financial inclusion, their effects become significant only in the long run. Conversely, a decline in GDP per capita growth hinders financial inclusion, primarily affecting the short run.

This study fills a gap in research on macroeconomic and socioeconomic factors influencing financial inclusion in India by examining the impact of GDP per capita growth, remittance inflows and the income share held by the lowest 20% of the population, an area relatively unexplored in the Indian context. Second, the study provides comprehensive distinct results for different financial inclusion indicators, offering valuable insights for policymakers. These findings are particularly relevant for policymakers working toward Sustainable Development Goal 8.10.1, as they can use the results to tailor policies that align with SDG objectives. Additionally, policymakers in other developing nations can benefit from this study’s findings to enhance financial inclusion in their respective countries.

This paper studies the density of bank branches in districts of Slovakia and aims to identify determinants that explain or justify districtural differences in the density of bank branches.

Bank branch density is measured by the number of branches in a district, and banks are further differentiated by size and profile. Potential determinants of bank branch density are sought through univariate and bivariate Poisson regressions amongst economic factors, socioeconomic factors, technological factors, urbanization factors, and branch market concentration.

Using data from 2016, it has been found that branch numbers in districts are determined chiefly by five factors that describe their economic development, population size with its characteristics, and existent branch concentration. The spatial distribution of bank branches in the territory of Slovakia is not random, but is found to be affected by environmental factors measurable at the districtural level. Only 22 Slovak districts representing administrative or economic centers are expected to be over-branched.

The study helps to identify factors that need be accounted for in planning and redesigning of branch networks or in implementing mergers and acquisitions on a bank level. The results are also useful in regional policy and regulatory oversight.

The present study is unique since the decision-making processes of Slovak commercial banks in planning the location and density of their branch networks have not been rationalized and researched as of yet.