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Does bank branch density reduce income inequality in the Spanish provinces?

Author

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  • Cruz-García, Paula
  • Peiró-Palomino, Jesús

Abstract

This paper analyzes whether the density of bank branches is affecting income inequality in the Spanish provinces in the post-crisis years (2015–2019). The results show a non-significant impact for the analyzed period, and hold for a variety of scenarios, estimation methods and different types of bank. Then, although most previous literature suggests that bank branches reduce inequality, especially in advanced economies, that finding does not hold for the Spanish case. The advance of digitalization and the emergence of new forms of banking are potential candidates that might explain our results.

Suggested Citation

  • Cruz-García, Paula & Peiró-Palomino, Jesús, 2023. "Does bank branch density reduce income inequality in the Spanish provinces?," Finance Research Letters, Elsevier, vol. 58(PD).
    • Handle: RePEc:eee:finlet:v:58:y:2023:i:pd:s1544612323009972
    DOI: 10.1016/j.frl.2023.104625
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    More about this item

    Keywords

    Bank branches; Gini index; Inequality; Spanish provinces;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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