Regional Differences of Local Banking Systems in China

  • 1. Institute of Geographic Sciences and Natural Resources Research, CAS, Beijing 100101, China;
    2. Graduate School of the Chinese Academy of Sciences, Beijing 100039, China

Received date: 2007-05-18

  Revised date: 2007-08-08

  Online published: 2007-12-25

Supported by

Knowledge Innovation Programme Key Project of CAS, No.KZCX3-SW-353


In the case of banking, this paper defines local financial sys tems as thos e financial ins titutions which s erve different spatial ranges located in an adminis trative region. We divide these banking ins titutions into two types : the exogenous ins titutions and the endogenous ins titutions . The exogenous ins titutions are national s tate-owned banks , and the endogenous ins titutions are local banks . The former ones contain the s tate-owned commercial banks , the policy banks , the national joint shareholding commercial banks ; and the latter ones include the city commercial banks and the rural credit cooperatives . With the two types combined, local financial sys tems experience three s tages : The firs t one is the budding s tage . In this s tage , the exogenous ins titutions dominate the financial s ervices in a region; the endogenous ins titutions jus t begin their financial affairs . The s econd one is the developing s tage . Local financial sys tems have the dynamic changes in this s tage . On one hand, sys tems become more attractive for the exogenous ins titutions and make the endogenous ins titutions grow up fast; on the other hand, sys tems develop so s low that the exogenous ins titutions choos e to leave the region. The third one is the mature s tage , the endogenous ins titutions develop to the exogenous ins titutions , and sys tems change to financial centers . Based on the data from the s tatis tics of the Central Bank, this paper analys es the spatial differences among provinces . The result shows that the eas tern part plays an es s ential role in both the ins titution numbers and the as s ets ; local financial sys tems in this part are in the mature s tage . While the middle and wes tern parts have a small portion compared with the eas tern, the sys tems in thes e areas are in the budding and s low developing s tage . In local financial sys tems , the branches of s tate-owned banks dominate local financial sys tems ; the foreign banks concentrate on important city nodes ; the national joint shareholding commercial banks centralize in certain areas ; the city commercial banks are unevenly dis tributed; and the rural credit cooperatives have little contribution to local economy.

Cite this article

WU Wei, LIU Weidong, LIU Yi . Regional Differences of Local Banking Systems in China[J]. Acta Geographica Sinica, 2007 , 62(12) : 1235 -1243 . DOI: 10.11821/xb200712012


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