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How local conditions affect global banking: The case of BBVA and Santander

Author

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  • Cuevas Casaña, Joaquim
  • Martín Aceña, Pablo
  • Pons Brias, María A.

Abstract

This paper explores why Spanish banks internationalise and why Latin America has been the main region for the international expansion of BBVA and Santander. It shows that prior to 1986 Spanish banks had a limited presence abroad, and analyses the main drivers of this initial expansion (remittances and trade connections). However, from 1986 on, there was a confluence of domestic and external factors (economic and regulatory changes in Latin America) that encouraged the international forays of BBVA and Santander. The fact that changes in the Spanish and the Latin American financial sectors occurred just when other transnational banks were turning their attention to other regions created the optimal conditions for the expansion of Spanish banks in Latin America.

Suggested Citation

  • Cuevas Casaña, Joaquim & Martín Aceña, Pablo & Pons Brias, María A., 2019. "How local conditions affect global banking: The case of BBVA and Santander," eabh Papers 19-02, The European Association for Banking and Financial History (EABH).
    • Handle: RePEc:zbw:eabhps:1902
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    References listed on IDEAS

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    More about this item

    Keywords

    Banking globalisation; Financial markets in Latin America; Spanish banks;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean

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