Summary - TST 34
TRANSPORTES, SERVICIOS Y TELECOMUNICACIONES
José Luis GARCÍA RUIZ
Financial innovation and the fall of the big banks of Madrid (1960-2000)
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[ Abstract ]
The crisis of the Spanish financial system in 1977-1985 put an end to the long-standing hegemony of the Madrid big banks (Hispano, Banesto, Central). Santander took control of these institutions, which was crucial to increase its size in order to be a “global player” in a subsequent stage. This process never has been explained in a satisfactory way. The aim of this paper is to assess the role of innovation using new sources (found in the Banco Popular Archives). The main conclusion is that neither technological innovations nor financial innovations seem to have played a key role. The traditional “boring banking” (Krugman) of the Northern banks (Santander, Bilbao, Vizcaya) won the match.