Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches

Shusen Qi, Ralph De Haas, Steven Ongena and Stefan Straetmans
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Stefan Straetmans: RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Sustainable Development, Finance

No 6, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: We study how information sharing between banks influences the geographical clustering of branches. We construct a spatial oligopoly model with price competition that explains why bank branches cluster and how the introduction of information sharing impacts clustering. Dynamic data on 59,333 branches operated by 676 banks in 22 countries between 1995 and 2012 allow us to test the hypotheses derived from this model. Consistent with our model, we find that information sharing spurs banks to open branches in localities that are new to them but that are already relatively well served by other banks. Information sharing also allows firms to borrow from more distant banks.

JEL-codes: D43 G21 G28 L13 R51 (search for similar items in EconPapers)
Date: 2019-02-12
New Economics Papers: this item is included in nep-ban, nep-com and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://cris.maastrichtuniversity.nl/ws/files/32625086/RM19006.pdf (application/pdf)

Related works:
Journal Article: Move a little closer? Information sharing and the spatial clustering of bank branches (2024)
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2023)
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2021)
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2018)
Working Paper: Move a Little Closer? Information Sharing and the Spatial Clustering of Bank Branches (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2019006

DOI: 10.26481/umagsb.2019006

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