2018 | 2 (71) | 7-29
Article title

Governance, Cohesion and Banking in Spain from a Spatial Perspective

Title variants
Languages of publication
During the global financial crisis, regional banks – dependent on local savings and only able to lend these savings to customers within their respective regions – helped avoid a credit crunch in some countries; while in others, they did not fulfil this function. This paper elaborates governance structures that influenced the success of regional banking systems in Spain, with regard to regulation principles, the overall economic and political structures, and self-organisation of regional banks. With respect to the high importance of the decentralised banking sector in Germany, the paper compares the state of decentralised banking between Spain and Germany, concluding that the regional principle in Germany, a decentralized state structure with mechanisms of regional balance, and the self-governance of regional banks are important factors.
Physical description
  • Institute for Work and Technology,
  • Otto-von-Guericke Universität Magdeburg
  • Alessandrini, P., Fratianni, M., Papi, L., Zazzaro, A., 2016, Banks, Regions and Development after the crisis and under the new regulatory system, Money & Finance Research, Università Politecnica delle Marche, Ancona, online available on:,-13,842.
  • Alessandrini, P., Zazzaro, A. A., 1999, Possibilist. Approach to Local Financial System and Regional Development: The Italian Experience, in: Martin, R. (eds.) 1999, Money and the Space Economy.
  • Alessandrini, P.; Presbitero, A. F.; Zazzaro, A. (2009): Geographical Organization of Banking Systems and Innovation Diffusion. In: P. Alessandrini, M. Fratianni and A. Zazzaro (eds.): The changing geography of banking and finance. New York, NY, p. 75-108.
  • Allen, F. and D. Gale (2001), Comparing financial systems. Cambridge, Mass.: MIT Press.
  • Audretsch, D. B.; Lehmann, E. E. (2016): The Seven Secrets of Germany. Economic Resilience in an Era of Global Turbulence. New York.
  • Bathelt, H.; Henn, S. (2014): The Geographies of Knowledge Transfers over Distance: Toward a Typology. Environment and Planning A 46(6), p. 1403-1424.
  • Batiz-Lazo, B., & Maixe-Altes, J. C. (2006). Organisational change and the computerisation of British and Spanish savings banks, 1965-1985.
  • Beck, U., 2012, Das deutsche Europa. Neue Machtlandschaften im Zeichen der Krise, 1, Suhrkamp.
  • Beck, U., Bonss, W. (Eds.), 2001, Die Modernisierung der Moderne, (Vol. 1508), Suhrkamp., Frankfurt a. Main.
  • Berger, A. N.; Miller, N.; Petersen, M.; Rajan, R.; Stein, J. (2005): Does Function Follow Organizational Form? Evidence from the Lending Practices of Large and Small Banks. In: Journal of Financial Economics 76 (2), p. 237–269.
  • Boot, A. W. A. (2000): Relationship Banking: What Do We know? In: Journal of Financial Intermediation 9 (1), p. 7–25.
  • Boschma, R., 2005, Proximity and Innovation: A Critical Assessment. In: Regional Studies 39 (1), p. 61-74.
  • Brämer, P., Gischer, H., Pfingsten, A., & Richter, T. (2010). Der öffentliche Auftrag der deutschen Sparkassen aus der Perspektive des Stakeholder-Managements. Zeitschrift für öffentliche und gemeinwirt-schaftliche Unternehmen: ZögU/Journal for Public and Nonprofit Services, p. 311-332.
  • Bülbül, D., Schmidt, R. H., Schüwer, U. (2013): Savings Banks and Cooperative Banks in Europe (SAFE policy papers 5).
  • Cabral, I., Dierick, F., Vesala, J. M., 2002, Banking integration in the euro area, (No. 06). European Central Bank.
  • Carbó-Valverde, S., Marqués-Ibáñez, D. and Rodríguez-Fernández, F. (2011): “Securitization, Bank Lending and Credit Quality. The Case of Spain” ECB Working Paper.
  • Catarineu, E., Pérez, D. (2008): La titulización de activos por parte de las entidades de crédito: el modelo español en el contexto internacional y su tratamiento desde el punto de vista de la regulación prudencial. Estabilidad financiera, 14, 88-121.
  • CECA annual report 2015.
  • Chick, V., Dow, S., 1988, A post-Keynesian perspective on the relation between banking and regional development, Thames Polytechnic.
  • Christians, U., 2010, Zur Ertragslage der Sparkassen und Genossenschaftsbanken in den strukturarmen Regionen Ostdeutschlands, in: Christians, U., Kay, H. (Eds.), Unternehmensfinanzierung und Region. Finanzierungsprobleme mittelständischer Unternehmen und Bankpolitik in peripheren Wirtschaftsräumen.: Kovac (Schriftenreihe Finanzmanagement, 70), Hamburg: 231–253.
  • Commission of the European Communities, 2009, European Financial Integration Report 2008, Commission Staff Working Document, Brussels.
  • Conrad, A., 2010, Banking in schrumpfenden Regionen. Auswirkungen von Alterung und Abwanderung auf Regionalbanken unter besonderer Berücksichtigung der Sparkassen, Univ., Diss.-Rostock, 2009,: Kovac (Schriftenreihe volkswirtschaftliche Forschungsergebnisse, 159), Hamburg.
  • Degryse, H.; Kim, M.; Ongena, S. (2009): Microeconometrics of banking. Methods, applications, and results. Oxford, New York.
  • Deutsche Bundesbank (1990): Monatsberichte der Deutschen Bundesbank Januar 1990.
  • Deutsche Bundesbank (2017): Bankenstatistik Juni 2017. Statistisches Beiheft 1 zum Monatsbericht.
  • Dixon, A. D. (2014): The new Geography of Capitalism. Firms, Finance, and Society. Oxford.
  • Dörry, S. (2015): Strategic nodes in investment fund global production networks: The example of the financial centre Luxembourg. In: Journal of Economic Geography 15 (4), p. 797-814.
  • Dow, S. C.; Rodríguez-Fuentes, C. J. (1997): Regional Finance: A Survey. In: Regional Studies 31 (9), p. 903-920.
  • Dymski, G., 2013, The logic and impossibility of austerity, Social Research: An International Quarterly, 80(3): 665-696.
  • Engerer, H.; Schrooten, M. (2004): „Untersuchung der Grundlagen und Entwicklungsperspektiven des Bankensektors in Deutschland (Dreisäulensystem)“ im Auftrag des Bundesministeriums der Finanzen. Deutsches Institut für Wirtschaftsforschung. Berlin.
  • Fischer, K.-H.; Pfeil C. (2004): Regulation and Competition in German Banking. In: J. P. Krahnen und R. H. Schmidt (eds.): The German financial system. Oxford, p. 291–349.
  • Flögel, F. (2017): Distance and Modern Banks’ Lending to SMEs: Ethnographic Insights from a Comparison of Regional and Large Banks in Germany. In: Journal of Economic Geography July 2017.
  • Flögel, F.; Gärtner, S., 2016, Niedrigzinsphase, Standardisierung, Regulierung: regionale Banken was nun? Gelsenkirchen: Inst. Arbeit und Technik. IAT discussion paper, no. 16/02
  • Friedmann, J. (1986): The World City Hypothesis. In: Development and Change 17 (1), p. 69-83.
  • Gall, L. (1995). Die Deutsche Bank, 1870-1995 (No. 202). CH Beck.
  • Gärtner, S. (2011): Regionen und Banken: Gedanken im Lichte der Krise. In: Informationen zur Raumentwicklung, H. 2, S. 153-167
  • Gärtner, S. (2013): World capitals of capital, cities and varieties of finance systems: internationality versus regionally oriented banking. In: Fujita, Kuniko (ed.): Cities and crisis: new critical urban theory. London: Sage, p. 147-187
  • Gärtner, S., 2008, Ausgewogene Strukturpolitik: Sparkassen aus regionalökonomischer Perspektive, (Vol. 5), LIT Verlag, Münster.
  • Gärtner, S., 2009, Balanced Structural Policy: German Savings Banks from a Regional Economic Perspective, Perspectives (58), June 2008.
  • Gärtner, S., 2013, 5 World Capitals of Capital, Cities and Varieties of Finance Systems: lnternationally versus Regionally Oriented Banking, in: Kuniko Fujita (Eds.), 2013, Cities and Crisis. New CriticaI Urban Theory, SAGE STUDIES IN INTERNATIONAL SOCIOLOGY: 62.
  • Gärtner, S.; Flögel, F. (2017): Raum und Banken. Zur Funktionsweise regionaler Banken. Baden Bande.
  • Gärtner, S.; Flögel, F., 2014, Call for a Spatial Classification of Banking Systems through the Lens of SME Finance-Decentralized versus Centralized Banking in Germany as an Example, (No. 97512), ZBW-German National Library of Economics, available at SSRN 2446822.
  • Gowan, P., 2009, Crisis in the Heartland, New left review, 55(2): 5-29.
  • Greenham, T., Prieg, L., 2015, Reforming RBS, Local Banking for the public good, New Economic Foundation, London.
  • Grote, M. H. (2004): Die Entwicklung des Finanzplatzes Frankfurt. Eine evolutionsökonomische Unter-suchung. Berlin.
  • Hakenes, H., Schnabel, I., 2006, The threat of capital drain: A rationale for public banks? MPI Collective Goods Preprint, (2006/11).
  • Hall, P. A., Soskice, D., 2001, Varieties of capitalism and institutional change: A response to three critics, Comparative European Politics, 1(2): 241-250.
  • Hall, S.; Appleyard, L. (2009): City of London, City of Learning? Placing business education within the ge-ographies of finance. Journal of Economic Geography, 9(5), p. 597-617.
  • Handke, M. (2011): Die Hausbankbeziehung. Institutionalisierte Finanzlösungen für kleine und mittlere Unternehmen in räumlicher Perspektive. Berlin
  • Hardie, I.; Howarth, D. (2013a): Framing Market-Based Banking and the Financial Crisis. In: I. Hardie and D. Howarth (eds.): Market-Based Banking and the International Financial Crisis. Oxford, p. 22-55.
  • Hardie, I.; Howarth, D.; Maxfield, S.; Verdun, A. (2013): Introduction: Towards a Political Economy of Banking. In: I. Hardie and D. Howarth (eds.): Market-Based Banking and the International Financial Crisis. Oxford, p. 1–21.
  • Historische Gesellschaft der Deutschen Bank e.V. (2009): Wünsche werden Wirklichkeit. 50 Jahre Privatkundengeschäft. München, Zürich.
  • Illueca, M. ; Pastor, José M.; Tortosa-Ausina, E. (2005): The Effect of Geographic Expansion on the Produc-tivity of Spanish Savings Banks. Fundación de Las Cajas de Ahorros. Documento De Trabajo, No. 213/2005.Otero-Iglesias, M., 2013, From Harbinger to Role Model: The Influence of the Euro in Regional Monetary Cooperation, in: Global Power Europe-Vol. 1, Springer, Berlin Heidelberg: 163-179.
  • Klagge, B. (1995): Strukturwandel im Bankenwesen und regionalwirtschaftliche Implikationen. Konzepti-onelle Ansätze und empirische Befunde. In: Erdkunde 49 (3), p. 285–304.
  • Klagge, B.; Martin, R. (2005): Decentralized versus centralized financial systems: Is there a case for local capital markets? In: Journal of Economics Geography 14 (3), p. 387-421.
  • König, W.; Schamp, E.W.; Beck, R.; Handke, M.; Prifling, J.; Späthe, S.H. (2007): Finanzcluster Frankfurt. Eine Clusteranalyse am Finanzzentrum Frankfurt/Rhein-Main. Frankfurt: Books on Demand.
  • Leßmann, C., 2005, Regionale Disparitäten in Deutschland und ausgesuchten OECD-Staaten im Vergleich. In: ifo Dresden berichtet 12 (03), S.25-33.
  • Levine, R. (2005), Finance and Growth: Theory and Evidence. In: P. Aghion and S.N. Durlauf (Hg.): Handbook of economic growth. Amsterdam, p. 865-934.
  • Levine, R., 1998, The legal environment, banks, and long-run economic growth, Journal of money, credit and banking, 30(3): 596-614.
  • Lo, V. (2003): Wissensbasierte Netzwerke im Finanzsektor. Das Beispiel des Mergers & Acquisitions-Geschäfts. Wiesbaden: Dt. Univ.-Verl. (Gabler Edition Wissenschaft).
  • Manna, M. (2004). Developing statistical indicators of the integration of the Euro area banking system (Working Paper Series No- 300). Frankfurt am Main: European Central Bank (ECB).
  • Myrdal, G. (1959): Ökonomische Theorie und unterentwickelte Regionen. Berlin.
  • OECD, 2013, TL2 regional range in household income, as a % of income in the country's median region, 2010, in OECD Regions at a Glance 2013, OECD Publishing, Paris. DOI:
  • Papi, L., Sarno, E., Zazzaro, A. (2017) The geographical network of bank organizations: issuesn and evidence for Italy. In R. Martin and J. Pollard (eds.) Handbook on the Geographies of Money and Finance, p.156–197. Cheltenham.
  • Petersen, M. A.; Rajan, R. G. (1995): The Effects of Credit Market Competition on Lending Relationships. In: The Quarterly Journal of Economics 110 (2), p. 407–443.
  • Pollard, J. S. (2003): Small firm finance and economic geography. In: Journal of Economic Geography 3 (4), p. 429–452.
  • Pollard, J., Samers, M., 2007, Islamic banking and finance: postcolonial political economy and the decentring of economic geography, in: Transactions of the Institute of British Geographersntroductory Geography 32 (3): 313–330.
  • Romero, A., 1997, El cálculo del futuro: Más allá de la economía y la política, Revista de Ciencias Sociales, 3(1).
  • Sassen, S. (2001): The global city. New York, London, Tokyo. New Jersey.
  • Schamp, E., W. (2009): Das Finanzzentrum — ein Cluster. Ein multiskalarer Ansatz und seine Evidenz am Beispiel von Frankfurt/ RheinMain. In: Zeitschrift für Wirtschaftsgeographie 53 (1-2), p. 89–105.
  • Shleifer, A., Vishny, R. W., 1997, A survey of corporate governance, The journal of finance, 52(2): 737-783.
  • Stein, J. (2002): Information Production and Capital Allocation: Decentralized versus Hierarchical Firms. In: The Journal of Finance 57 (5), p. 1891-1921.
  • Taylor, P.; Beaverstock, J.; Cook, G.; Pandit, N. Pain K.; Greenwood, H. (2003): Financial Services Clustering and its significance for London. Extended Report. Loughborough University; Manchester Business School.
  • Therborn, G. (2011): End of a paradigm: the current crisis and the idea of stateless cities. In: Environment and Planning A 43 (2), p. 272-285.
  • Torre, A. (2008): On the Role Played by Temporary Geographical Proximity in Knowledge Transmission. In: Regional Studies 42 (6), p. 869-889.
  • Torre, A.; Rallet, A. (2005): Proximity and Localization. In: Regional Studies 39 (1), p. 47-59.
  • Udell, G.F. (2008): What`s in a relationship? The case of commercial lending. In: Business Horizons 51 (2): S. 93-103.
  • Uzzi, B.; Lancaster, R. (2003): Relational embeddedness and learning: The case of bank loan managers and their clients. In: Management Science 49 (4), p. 373-399.
  • Verdier, D., 2002, Moving money: Banking and finance in the industrialized world, Cambridge University Press.
  • Völter, A. (2000): Die Sparkassen und das Retailbanking. Stuttgart
  • Wójcik, D.; MacDonald-Korth, D. (2015): The British and the German financial sectors in the wake of the crisis: size, structure and spatial concentration. In: Journal of Economic Geography 15 (5), p. 1033-1054.
  • WSBI (2017): trustee savings banks in the UK 1810-1995. In:
Document Type
Publication order reference
YADDA identifier
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.