A “tsunami” of bank branch closures has swept across Catalonia since the 2008 financial crisis, erasing over 6,000 offices and leaving more than half of the region’s municipalities without any physical banking presence. A stark new report from the Catalan Competition Authority (ACCO) warns this dramatic consolidation creates a high-risk oligopoly and fuels serious concerns over financial exclusion for hundreds of thousands of residents.

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The report, titled “Analysis of the concentration of the banking sector in Catalonia,” details a 74% reduction in the region’s branch network between 2008 and 2024, equalling the disappearance of 6,038 branches. Successive waves of mergers and acquisitions, such as CaixaBank’s absorption of Bankia, drove this transformation. This also led to the complete disappearance of the 10 traditional Catalan savings banks (caixes d’estalvis) that once formed the backbone of local finance.

This consolidation has left the retail banking market in the hands of a few dominant players. The ACCO analysis labels the current market an “oligopoly,” with four main banks-CaixaBank, BBVA, Banc Sabadell, and Banco Santander-which collectively operate 85% of all remaining branches in Catalonia.

A Region of Banking Deserts

The consequences of this retreat are most visible in smaller towns and rural areas. According to the report, a staggering 503 of Catalonia’s 947 municipalities (53%) are now without a single bank branch. The situation is almost as dire for cash access, with 435 municipalities (46%) having no ATMs.

This leaves residents, particularly the elderly, those with limited digital literacy, and small businesses, facing significant hurdles in managing their finances. The ACCO warns that a lack of competition can worsen “the quality or conditions of services,” listing potential issues such as reduced opening hours, higher fees, lower returns on deposits, and greater difficulty in accessing credit. The closure of thousands of branches across the region reflects a dramatic shift in how banks use their physical space, with some historic financial buildings in Barcelona now being converted into hotels.

The market concentration is stark:

  • CaixaBank leads with an overwhelming 39.22% of branches (828 offices).
  • BBVA follows at a distance with 18.85% (398 offices).
  • Banc Sabadell holds 15.92% (336 offices).
  • Banco Santander has 10.90% (230 offices).

The fifth-largest bank, Ibercaja, controls just 3.27% of the network. The ACCO notes the risk to competition is even more acute in the provinces of Girona, Lleida, and Tarragona, where some areas are served by only one or two banks.

A Call for Action from Parliament

The Parliament of Catalonia commissioned the ACCO’s study in response to a motion exploring the need for a public development bank. This political backdrop highlights growing official concern over the market’s direction. The competition authority had previously voiced similar concerns when it published a report opposing the ultimately failed hostile takeover bid by BBVA for Banc Sabadell.

Data from the Bank of Spain confirms that Catalonia, along with other populous regions like Andalusia and Madrid, now has one of the lowest ratios of bank branches per 100,000 inhabitants. This comes as the regional government is itself making strategic property moves, having recently purchased part of the central bank’s former Barcelona headquarters.

To combat the growing financial exclusion, the ACCO recommends several measures. It strongly advises against any further mergers or acquisitions that would increase concentration, particularly in already underserved areas.

The report also highlights existing and potential solutions, including:

  • Mobile Banking Units: The Generalitat de Catalunya has already contracted CaixaBank and Caixa Enginyers to provide mobile services to 503 towns, serving over 300,000 people. A similar scheme by the Diputació de Barcelona serves another 96 localities.
  • Shared ATM Networks: Encouraging banks to pool resources for cash machines.
  • Partnerships: Collaborating with businesses that have a wide territorial presence, such as post offices, tobacconists, and lottery administrators, to offer basic banking services.
  • Cashback Services: Allowing customers to withdraw or deposit cash at commercial establishments.

Whilst fintech and online-only banks offer some competitive pressure, the ACCO report, as cited by VilaWeb and Ara, suggests their impact on core services remains “limited” and that the entry of new traditional banks with physical branches is “not likely.”