SCIENTIA GEOGRAPHICA SINICA ›› 2019, Vol. 39 ›› Issue (2): 294-304.doi: 10.13249/j.cnki.sgs.2019.02.014

• Orginal Article • Previous Articles     Next Articles

The Spatial Evolution of Banking Industry and Firm Credit

Xiaoming Yao(), Shengjun Zhu()   

  1. College of Urban and Environmental Sciences, Peking University, Beijing 100871, China
  • Received:2018-01-14 Revised:2018-03-05 Online:2019-02-10 Published:2019-02-10
  • Supported by:
    National Natural Science Foundation of China (41701115).

Abstract:

Under the background of China's transitional economy, the spatial organization structure of banks has been adjusted, and firm credit environment has changed accordingly. This article argues that spatial expansion of banks and rising of local banks are the main motive force for the spatial evolution of banking in China. We use operational distance and functional distance to describe the spatial evolution of banks. Based on the analysis of the spatial evolution of banking industry, this article introduces the local banking characteristics variables as the explanatory variables that restrict firm credit. The empirical results show that reducing the operational distance can only improve the corporate credit environment in the western and northeastern regions of China while reducing the functional distance can effectively improve firm credit. The competitive local banking market can enhance the credit access of non-state-owned enterprises. The localization of banks also increased the access of non-state-owned enterprises to credit, and so on. In the context of transitional economy, marketization forces can effectively increase the range of security credit, while the decentralization process has effectively improved the credit environment of enterprises.

Key words: operational distance, functional distance, local banking characteristics, firm credit, China

CLC Number: 

  • F129.9