Catalonia has lost 6,000 bank branches since 2008. The risk of financial exclusion is growing.

BarcelonaSince 2008, there has been a veritable tsunami in the banking sector. Financial institutions have closed 6,000 branches in Catalonia since then, thus increasing the risk of financial exclusion, according to a report by the Catalan Competition Authority (ACCO). This process has resulted from various consolidation initiatives, such as CaixaBank's acquisition of Bankia. Consequently, Catalonia, along with Andalusia and Madrid—the most populous autonomous communities—has the fewest bank branches per 100,000 inhabitants, according to data from the Bank of Spain. The ACCO analysis, which previously produced a similar report opposing BBVA's takeover bid for Banc Sabadell (a bid that ultimately failed), also warns of the risks of excessive concentration in certain areas and responds to a motion from the Parliament of Catalonia regarding the need to establish a public banking system focused on economic development. The consolidation of the banking sector in Catalonia has been accompanied by branch closures, a decrease in the number of ATMs, and job losses. Between 2008 and 2024, Catalonia lost 6,038 branches, a 74% reduction. As a result, 503 Catalan municipalities (53% of the total) have no bank branches and 435 (46%) have no ATMs. This process has also led to the disappearance of the 10 existing savings banks and a significant increase in concentration: the four largest banks together operate 85% of the branches. According to the study, "the concentration of the retail banking market in Catalonia can be considered high, both in terms of the availability of bank branches and the amount of credit granted." The study adds that "generally, these are markets with an oligopoly structure in which CaixaBank has a significant market share, followed by BBVA, Sabadell, and Santander. Only in a few specific cases do other entities have a considerable market share, such as Ibercaja in the province of Lleida." According to the study, CaixaBank operates 39.22% of branches (828), BBVA 18.85% (398), Banco Sabadell 15.92% (336), and Banco Santander 10.90% (230). The fifth largest bank, Ibercaja, has only 3.27% of branches (69), and the remaining entities, combined, have a market share of 11.84% (250). Currently, only Banc Sabadell, which relinquished its headquarters last year during BBVA's takeover bid, Caixa Ingenieros, and Caixa Guissona have their registered offices in Catalonia. CaixaBank has one in Valencia, although its owner, the La Caixa Foundation, and its investment arm, Criteria, relocated it to Barcelona last year. In total, there are 29 deposit-taking institutions operating in Catalonia.

Higher risk in Girona, Lleida and Tarragona

The Acco states that the concentration is even greater and that, therefore, there is a greater risk to competition in the provinces of Girona, Lleida, and Tarragona, especially in those areas where only one bank is present or where there are few banks. It also states that the fintech Traditional online banking can improve free competition in the market and exert some competitive pressure, although "it appears limited." The study notes that competitive pressure via the internet "seems greater for certain products such as consumer loans, accounts and deposits for individuals, and payment services." It adds that "it does not seem likely that other traditional banks with branches and ATMs will enter Catalonia." The fact that there is little competition in certain areas may allow the main established banks to "exercise market power without a significant loss of customers." This can translate into "higher costs and a decline in the quality or conditions of services received by banking customers, especially individual customers and SMEs, such as reduced opening hours, higher fees, lower returns on deposits, difficulty accessing credit, and increased or lower borrowing costs." Furthermore, the reduction in bank branches and ATMs can lead to financial exclusion.

The Catalan Banking Association (ACCO) recommends avoiding new concentrations, "especially in municipalities or geographical areas with higher concentration levels." It also advises opting for mobile banking in areas without bank branches, a system implemented in Catalonia through a Generalitat tender won by CaixaBank and Caixa Ingenieros, serving 503 towns and villages with a combined population of 308,000 who lack physical branches; or the Barcelona Provincial Council, which awarded Prosegur a similar service for 96 towns in the province with a combined population of 58,000.

At the same time, the Competition Authority proposes significant measures such as shared ATM networks between various credit institutions and independent ATMs, collaboration agreements between credit institutions and operators from other markets with an extensive territorial presence (such as post offices, tobacconists or cash administrations in commercial establishments (cashback either cash-in-shop).