IDEAS home Printed from https://ideas.repec.org/a/ekz/ekonoz/2013308.html
   My bibliography  Save this article

Can relationship banking survive the Spanish economic crisis?

Author

Listed:
  • Gary A. Dymski

    (Leeds Business School University of Leeds)

Abstract

This paper shows that the global financial and economic crisis has jeopardized the viability of relationship banking in Spain, and threatens to undercut this key element in the national structure of productive financial intermediation. The capacity of the Spanish banking system to provide relationship-banking services, which was threatened even before the crisis, is now compromised by four mutually-reinforcing forces: a tendency for credit flows to be higher in central regions and lower in peripheral ones; the shift of liquidity to central regions in financialcrisis periods; the asymmetric protection offered to the large financial intermediaries that are least proficient at (or interested in) spatially-distributed relationship banking; and the forced recapitalization of Spanish banks, which selects against small and outlying banks and requires increased minimum operating scale. These four forces constitute a quadruple ratchet effect, reinforcing the centralization of credit flows while reducing relationship-banking intermediation capacities in peripheral regions and lower-income areas.

Suggested Citation

  • Gary A. Dymski, 2013. "Can relationship banking survive the Spanish economic crisis?," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 84(03), pages 182-205.
    • Handle: RePEc:ekz:ekonoz:2013308
    as

    Download full text from publisher

    File URL: http://www.ogasun.ejgv.euskadi.net/r51-k86aekon/es/k86aEkonomiazWar/ekonomiaz/downloadPDF?R01HNoPortal=true&idpubl=80®istro=1288
    File Function: complete text
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Manuel Pastor & Jose M. Pavía & Lorenzo Serrano & Emili Tortosa-Ausina, 2017. "Rich regions, poor regions and bank branch deregulation in Spain," Regional Studies, Taylor & Francis Journals, vol. 51(11), pages 1678-1694, November.
    2. Gila-Gourgoura, E. & Nikolaidou, E., 2017. "Credit Risk Determinants in the Vulnerable Economies of Europe: Evidence from the Spanish Banking System," International Journal of Business and Economic Sciences Applied Research (IJBESAR), International Hellenic University (IHU), Kavala Campus, Greece (formerly Eastern Macedonia and Thrace Institute of Technology - EMaTTech), vol. 10(1), pages 60-71, March.

    More about this item

    Keywords

    Spanish economic crisis; relationship banking; cajas; ethnic banking; subprime crisis; small and medium enterprises;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekz:ekonoz:2013308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Iñaki Treviño (email available below). General contact details of provider: https://edirc.repec.org/data/debages.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.