The specialisation of the Spanish banking sector: Building on original strengths, while adapting to a more challenging environment
Fecha: mayo 2012
Autores: Joaquín Maudos
Etiquetas: Sistema bancario, Diversificación, Internacionalización
The Spanish economy and in particular the banking sector have undergone an intense period of transformation driven by European integration, economic boom, and the financial crisis itself. This article analyses one of the key aspects of this transformation process – the specialisation of the Spanish banking system – over the past decade and within a European context. We conclude that, while originally an important strength of the Spanish banking model, the specialisation of the originate-to-hold, retail banking business into the property market, together with overexpansion of installed capacity, are some of the imbalances that need to be corrected to ensure the health of the sector. This is particularly important at a time when access to wholesale finance remains restricted and a period of significant economic slowdown and deleveraging lies ahead. Going forward, in parallel to the on-going restructuring efforts, the banking sector must also expand services, reorient business towards more productive sectors, increase its share of non-interest income, and importantly, internationalize.