Location decision variables determining the choice of site for the establishment of Commercial Bank branches in Onitsha, South-East Nigeria

Background and Objectives: This study identified the factors that most likely determine the choice of sites for the establishment of commercial bank branches in Onitsha in South-East Nigeria. Underlying this aim was the objective of evaluating the extent to which specific indicators of each location decision variable avail an explanation of the variation in the choice of location among these commercial banks. Methods: The study adopted exploratory survey research design, leading to the deployment of quantitative analysis of dataset collected from survey questionnaires administered to a census count of 24 commercial banks in Onitsha. Randomness and normality tests were performed on the 5-point Likert scale data for the examined indicators. Descriptive data analysis for the indicators featured the calculation of weighted mean score and standard deviation, while the six hypotheses postulated in the study were tested using Kruskal-Wallis H statistic. Findings: Pursuant to the test of the six hypotheses posed in the study, the five likely determinants of the choice of site for commercial bank branch in Onitsha, Nigeria include competitive advantage, operating cost, infrastructure, attractive land elements, and proximity to customers; while banks' compliance with government regulations did not feature as a significant location decision variable. Conclusion: The results suggest that commercial banks in Onitsha, Nigeria exercise economically viable site selection for the establishment of their branches, based on specific indicators that underlie the leading location decision variables or determinants namely competitive advantage, operating cost, infrastructure, attractive land elements, and proximity to customers.