GEOGRAPHICAL RESEARCH ›› 2016, Vol. 35 ›› Issue (11): 2153-2166.doi: 10.11821/dlyj201611012

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The spatio-temporal analysis of financial institution structure in China

Guirong LIU1,2(), Shuming BAO1,2(), Jinfeng SHE1,2, Hongli ZHANG2,3   

  1. 1. Business School, East China University of Science and Technology, Shanghai 200237, China
    2. China Data Center, University of Michigan, MI 48104, USA
    3. School of Statistics, Southwestern University of Finance and Economics, Chengdu 611130, China
  • Received:2016-04-26 Revised:2016-08-27 Online:2016-11-25 Published:2016-11-24

Abstract:

The financial institution structure in China has undergone tremendous changes since the 1980s; the financial service industry has evolved from retail banking to a more complex system involving commercial lending, insurance, securities and other services. Based on the spatial statistical analysis and GIS, the paper aims to analyze spatio-temporal changes in domestic financial institution structure, using the 2004 economic census data from banks, securities and insurance institutions. The studies have shown that domestic financial institutions have experienced phase-wise, jumping, asynchronous and nonstationary development over the time while spatially, these institutions have undergone an unbalanced development across provinces, municipalities and autonomous regions, resulting in significant differences between financial sectors in terms of spatial agglomeration. While financial institutions providing low-end financial services, such as retail banking, are evenly distributed with no significant agglomeration, financial institutions providing high-end services, such as investment and insurance, have experienced significant spatial agglomeration. Meanwhile, the discrepancy in spatial distribution is ever-increasing. Along with the financial security, incremental demanding in investment and financing, the proportion of domestic insurance banking, investment and financing banking will be continuously rising in the near future. It is expected that China's financial institution structure will be more diversified as the economic development and marketing reforms continue, and financial investment and securities services grow. It is also expected that the regional financial structure will experience spatial convergence in certain sectors while diverging in others. These two trends in regional financial institution structure domestically will coexist.

Key words: financial institution structure, spatial-temporal analysis, spatial agglomeration, spatial autocorrelation