Spain Is The Most 'Over-Banked' Nation In Europe

Tyler Durden's picture


Between headlines of Bankia's demise and the growing deposit outflows from Spanish banks, perhaps the market is doing its job. According to the EC's Stability Report, via UBS, one measure of bank sector capacity and efficiency (population per bank branch) shows Spain in a dismal worst place with the least efficiency (or highest over-capacity). Of course, we would suspect that whatever state-funded reach-around bailout the Spanish government comes up with next will not contain a 'revert staff/branch levels to European norms' provision - better to pay up for mis-allocation of capital. Nonetheless, the large number of local bank branches in countries like Germany, France, Italy and Portugal indicates a potential for further consolidation and restructuring there also.



Source: EC Stability Report

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Wed, 05/30/2012 - 17:46 | 2477464 Colombian Gringo
Colombian Gringo's picture

 No problem .Wait a few more months, and then Spain will be one of the least underbanked countries in Europe.

Wed, 05/30/2012 - 17:47 | 2477471 THX 1178
THX 1178's picture

Months? It seems to be moving faster than that.

Wed, 05/30/2012 - 17:55 | 2477493 BlueCollaredOne
BlueCollaredOne's picture

Agreed. I think TPTB want to get rid of the Euro, so everyone runs to the dollar. Once US banks get flooded with "ex euros" they will continue to buy up everything and further spread their influence. Then, after the world realizes that the dollar is worse than the Euro, in comes a one world currency.

Wed, 05/30/2012 - 18:06 | 2477525 fonzannoon
fonzannoon's picture

BCO you referring to the SDR?

Wed, 05/30/2012 - 18:17 | 2477548 Bonesetter Brown
Bonesetter Brown's picture

Euro goes down and the dollar becomes the one world currency on the other side of a whole lot of pain.  Everyone outside the US will complain but a failed Euro will show how hard it is to topple the USD.

USD reserve currency status gets threatened when US loses war in the Middle East or big carrier group gets taken out with one of those Chinese anti-carrier ICBMs.

Printing USD in a Euro-less world is a much smaller threat by comparison.

Wed, 05/30/2012 - 18:27 | 2477567 fonzannoon
fonzannoon's picture

I am pretty sure thats not going to happen. I think Putin would rather launch some missles.

Thu, 05/31/2012 - 02:53 | 2478502 Colonial Intent
Colonial Intent's picture

They swapped a kitty hawk in exchange for a song, thats a good investment.

"The incident, which took place in the ocean between southern Japan and Taiwan"

Read more:
Wed, 05/30/2012 - 19:17 | 2477679 Al Gorerhythm
Al Gorerhythm's picture

Just like Switzerland, eventually the US will have to implement Capital Control strategies to stop the INFLOWS of currency. The US$ will get so strong comparatively to other currencies, that the cost of US products will be prohibitive to foreigners. End of US economy ensues, in a real sense, when that occurs. ZIRP will see to that, as a negative rate of return (compared to gold), won't be offset by an increasing $ cross rate.

As for the oversupply of banks in Spain, the more branches and ATM's there are, the shorter the lines look. Perceptions.

Wed, 05/30/2012 - 18:01 | 2477511 Oracle of Kypseli
Oracle of Kypseli's picture

It's gonna be a long hot summer with no AC.

As I have posted before, the best Greece can do is wait out for Spain to go first, as Spain can not be contained. It's going to be a nice hot Friday in the summer and come Monday, Bernanke will have even darker circles arround his eyes.

His only way out will be his glock 40 in his top drawer.

Wed, 05/30/2012 - 18:28 | 2477569 Overfed
Overfed's picture

Hmmm....I dunno why, but the Bernank kinda strikes me as a revolver man. 44spl. Either way, he should use it soon.

Wed, 05/30/2012 - 19:21 | 2477693 Al Gorerhythm
Al Gorerhythm's picture

Will he Super Size it?

QE 1,2,3........

Wed, 05/30/2012 - 17:52 | 2477486 MendozaErika
MendozaErika's picture

m­­y bu­­d­dy­'s si­s­­te­r m­a­­kes $6­­8/­hr o­n the i­nt­­e­rn­­et. Ju­­st go to th­e si­­te and se­­t­u­p a fr­ee acc­­o­u­nt. www.LazyCash9.Com

Wed, 05/30/2012 - 17:58 | 2477505 MieleBauknecht
MieleBauknecht's picture

just $68/hr  to get your ass raped?

Wed, 05/30/2012 - 18:29 | 2477570 Going Loco
Going Loco's picture

What makes you think that anybody here is poor enough to be enticed by your ludicrous offer? Everybody here owns plentiful supplies of gold and silver bullion, which you will have to prise out of their cold dead hands. $68 an hour? Poof! I spit on your trifling offer, you mouldering remnant of a lame camel's left-hand testicle.

Wed, 05/30/2012 - 22:03 | 2478025 Nobody For President
Nobody For President's picture

One of the joys of this place, besides it being a post-grad kind of place for economics and international finance and real-world market stuff and like that, is the creative invective and  outstanding put downs that ZHers are capable of.

High class, Loco!

Wed, 05/30/2012 - 18:51 | 2477620 CSA
CSA's picture

Good thing she has a nice panoramic webcam.  Never seen a twat that size.  Erika, does it always froth like that?  Your buddy's sister might want to have that thing checked out.

Wed, 05/30/2012 - 21:28 | 2477915 Freewheelin Franklin
Freewheelin Franklin's picture

I used to live in Cherry Hill (embedded video in link). Lots of Jewish people live there. (Not that there's anything wrong with that).

Wed, 05/30/2012 - 17:54 | 2477490 zorba THE GREEK
zorba THE GREEK's picture

'Actually,' least underbanked', means the same as 'most overbanked'.

Wed, 05/30/2012 - 18:29 | 2477565 Overfed
Overfed's picture

@ Gringo: I've been studying ZH for a while now, and I still don't know shit, but your avatar pic is way too small too enjoy properly. :-)

Wed, 05/30/2012 - 17:49 | 2477473 BlueCollaredOne
BlueCollaredOne's picture

There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved.


Spain should give Iceland a call.

Wed, 05/30/2012 - 17:55 | 2477496 BandGap
BandGap's picture

You have to be kidding. They are on opposite sides of the cultural chasm.

Wed, 05/30/2012 - 21:30 | 2477922 Freewheelin Franklin
Freewheelin Franklin's picture

Oh sure, bring the Culture War into it. Isn't a financial war enough?

Wed, 05/30/2012 - 17:52 | 2477484 slaughterer
slaughterer's picture

Spain ===>> BK

Wed, 05/30/2012 - 17:54 | 2477489 BandGap
BandGap's picture

Spain, the country that traded 2.3 jobs for 1 by going "green". Spain, the country whose housing bubble makes the US problem look like a pimple on an elephant's ass. Spain, whose unemployment of people ages 18-26 rivals that of teens in inner city Chicago, where there will be 20-30 murders a weekend this summer. Spain, whose banking system is modeled after Drucker's Store in Green Acres and Petticote Junction reruns.

This is all so funny.

Wed, 05/30/2012 - 17:56 | 2477498 slaughterer
slaughterer's picture

BandGap, are you making fun of those Spanish Spiderman towels?

Wed, 05/30/2012 - 18:03 | 2477518 BandGap
BandGap's picture

No, I want one. big time hit with the ladies at the beach, I'm sure.

WTF, again, in an alternate universe I would be laughing my ass off at this shit. I'm too old for this, and yet I feel fortunate to be witnesses this unraveling.  I can actually remember investing in "normal" times.

Wed, 05/30/2012 - 18:58 | 2477642 Manthong
Manthong's picture

Do not sell Chicago short.. they should easily be popping an average of 40 per weekend this summer.

You can count on Rahm to help keep Chicago a pro-defenseless target city.

Wed, 05/30/2012 - 19:48 | 2477734 wee-weed up
wee-weed up's picture

Sadly, one does not have to be old to remember investing in "normal" times.

Wed, 05/30/2012 - 17:55 | 2477495 Snakeeyes
Snakeeyes's picture

Housing bubbles are a bank killer. And Spain went full ... home loan. Would YOU be confident about the European future?

Wed, 05/30/2012 - 18:00 | 2477510 Caviar Emptor
Caviar Emptor's picture

I blame Ernest Hemingway for starting the bubble

Wed, 05/30/2012 - 18:03 | 2477517 Aunt KatKat
Aunt KatKat's picture

You mean like there seems to be a Chase on every other corner?  There is money in the explantion, and money in the contraction, so it's all good for the bankers.  Wash, rinse and repeat.

Wed, 05/30/2012 - 18:06 | 2477526 e-man
e-man's picture

What really gets me is that many people warned of financial disaster prior to 1929, 2008 and now.  Yet they are always dismissed as tin foil hat wearing kooks.  I don't support the whole "end of the world is nigh" bit without any rational explanations.  But in all the previous examples, people had perfectly rational explanations as to their conclusions. 

Nobody wants to hear the truth at a really hot craps table. 

Wed, 05/30/2012 - 18:37 | 2477593 Zaydac
Zaydac's picture

They were and are dismissed as kooks only by politicians, central bankers, the mainstream media, trained economists, and people who don't pay any attention to anything that is not entertaining, work-related, or sexual.

The rest of us paid full attention, and continue to do so.

Wed, 05/30/2012 - 18:36 | 2477590 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It's because the bankers spend all their time getting play with prostitutes.

Wed, 05/30/2012 - 18:48 | 2477612 Bunga Bunga
Bunga Bunga's picture


People in over-banked Spain

get over-spanked to feel the pain.

Wed, 05/30/2012 - 18:50 | 2477619 Yen Cross
Yen Cross's picture

"Spanopoly"... When you pass "GO" collect 20billion €, and hop on the " Athens RailRoad"!

Wed, 05/30/2012 - 19:16 | 2477678 if
if's picture

Probably not as bad as it looks.  Spain has a lot of bank branches serving resort areas filled with tourists.  That appears to skew the population calc.


Wed, 05/30/2012 - 20:17 | 2477790 Tom Green Swedish
Tom Green Swedish's picture

Virtually all of Europe's banks are overleveraged worse than all the failed banks in the USA; WAMU, Lehman, National City and Bear.  They are completely fucked.  On Bloomberg a guy was on saying they need to deleverage over 5 trillion dollars; 1 trillion a year.

Wed, 05/30/2012 - 22:21 | 2478074 Nobody For President
Nobody For President's picture

Yes, dear friends, the Spanish Banking Problem truly does not look like it will end well.

Or the Portugal Banking Problem.

And the Irish are coming around again.

And Italy is looking a little dodgey.

And Greece - well, you know.

Better get one of those towels while you can.

Wed, 05/30/2012 - 23:24 | 2478258 mjk0259
mjk0259's picture

Millions of people from other countries have a second home in Spain and their home country banks follow them somewhat. Deutsche Bank has 250 branches there. Barclays had 460.  Also still a big tourist traffic area. So the number of people in Spain is considerably higher than the population of Spain.

Anyway, you don't need a lot of banks or bank branches to make a big mess. GMAC did it without any.


Thu, 05/31/2012 - 02:48 | 2478499 vh070
vh070's picture

Yah, but they have relatively lower operating costs — go figure.  It's a highly competitive system.  Besides you can't have it both ways: TBTF, anyone?  If my local branch goes, my account goes too, even if I don't enter the branch that often.  'Course, the cajas are holding lots of mierda, but isn't everyone nowadays?

Thu, 05/31/2012 - 05:11 | 2478552 drysafe
drysafe's picture

So, there are fewer customers per branch in Spain. So what? They get more personalized service - is that all that's wrong with this? That statistic alone doesn't seem to be related to anything. By the same token, are we all supposed to look up to Estonia and Czech Republic now as the islands of stability and efficiency, based on this one number? In the now-defunct Soviet Union, the number of citizens per branch was probably even higher!

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