MADRID — As Spain reopens after the COVID-19 crisis, its banking industry is seizing the opportunity to shrink its swollen branch network which has long been a drag on profitability, with just four banks so far planning at least 800 branch closures this year. Despite significant cuts since the 2008 financial crisis and more than 2,000 last year, Spain's 24,000 bank branches still give it one of the highest ratios to people in the world, according to the International Monetary Fund, trailing just San Marino, Mongolia and Luxembourg. Union opposition to closures and a population more reliant on using in-branch services than others in Europe have slowed Spanish banks' progress in closing branches despite their running costs being a major drag on profitability. But after shutting down huge parts of their networks during the lockdown, lenders are examining whether changes to consumer behaviour mean more branches can remain shut.

Source: International New York Times July 03, 2020 11:06 UTC