EconPapers    
Economics at your fingertips  
 

The dynamics of bank location decisions in Australia

Christopher Heard, Flavio Menezes () and Alicia Rambaldi ()

Australian Journal of Management, 2018, vol. 43, issue 2, 241-262

Abstract: This article exploits a large panel to study trends in, and determinants of, the decisions made by the four largest Australian banks about whether to establish or maintain branch- and automated teller machine (ATM)-level presence in a local market between 2002 and 2013. These decisions are potentially important for competition in local banking markets. Our analysis suggests that past presence is the most important factor for explaining current presence in a particular local market. Moreover, we present evidence that the four largest banks co-locate branches. The relationship between the location of other (smaller) banks and the location of the four largest banks is less clear; there is some limited evidence that this relationship is negative for two of the four largest banks. Our results also suggest that the four largest banks displayed changed behaviour in terms of their branch location decisions after the global financial crisis and that the changes differed between banks. Our analysis of ATM location decisions reveals that the four largest banks follow different strategies. These results suggest that Australian banks did not shy away from this limited form of competition, either before or after the global financial crisis (GFC). JEL Classification: C23, D43, G21, L13

Keywords: Banking; branch location; entry; exit (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0312896217717572 (text/html)

Related works:
Working Paper: The Dynamics of Bank Location Decisions in Australia (2016) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:43:y:2018:i:2:p:241-262

DOI: 10.1177/0312896217717572

Access Statistics for this article

More articles in Australian Journal of Management from Australian School of Business
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2020-10-15
Handle: RePEc:sae:ausman:v:43:y:2018:i:2:p:241-262