Bank Restructuring and Access to Financial Services: The Spanish Case

The Spanish bank sector has restructured extensively since the crisis erupted in 2008 in an attempt to correct the imbalances accumulated during the preceding boom years. Thanks to this restructuring effort, Spain's branch network has been pared back by 32 percent, prompting questions about potential ramifications for the population's access to financial services. Against this backdrop, this paper quantifies, at the municipal level, the segment of the population without access to a bank branch in their home town between 2008 and 2015, paving the way for analysis of the impact of the restructuring effort. It also analyses the role played by the three kinds of deposit institutions in Spain in providing access to financial services via their branch networks. The results show that although the percentage of the Spanish population without access to a branch in their home town has risen, the increase has been small, albeit marked by significant differences from one province to the next. The savings banks (including the former cajas that have converted to banks) are still the most important financial institutions in terms of facilitating branch access to financial services.