In this paper, we analyze the evolution of bank branches geographical network in the period 1991-2015 as compared to those observed for the other service sectors. More specifically, two appropriate measures of agglomeration within the banking sector are proposed. The first one picks up branch propensity to concentrate in specific local credit markets (spatial concentration), the second one represents the tendency for bank branches to localize in nearby local credit markets (polarization).
From the empirical analysis, it turns out that bank branches appear to be only weakly spatially concentrated and that this low level of spatial concentration is stable during the 1991-2015 time interval (it increased in the retail sector). On the other hand, local areas with a higher (lower) presence of banking branches tend to be geographically clustered, displaying also a moderately decreasing pattern in this polarization.
