Publications

This article examines the business transformation and the determinants of profitability in the Eurozone banking sector during 2008-2016. The data available suggest there is a (unequal) trend towards a more digital service model, with less branches, and where revenues rely more on both efficiency and a new customer relationship model. The article also offers some empirical evidence for Spain that suggests that even if market pressure (excess supply compared to demand and regulation) are still explaining branch reduction to a large extent, the change in the technological preferences of the demand (leaning to digital services) is also becoming progressively important. We estimate also that both regulation and the monetary environment had a negative and significant impact on bank profitability while online banking had a positive one. It is suggested that Spanish banks face and opportunity to develop a «digital relationship banking».

Carbó, S. and F. Rodríguez (2018): “El futuro de la rentabilidad bancaria, ¿tecnología o una nueva demanda?”, Papeles de Economía Española, 155, April, pp. 62-73.