The changing geography of banking in CESEE. Branch closures outpace openings

Elisabeth Beckmann and Jette Leonie Weinel

No 3256, Working Paper Series from European Central Bank

Abstract: We study the evolution of bank branch networks in ten CESEE countries between 2013 and 2021. Using a manually compiled dataset of all branches and their geocoordinates, we document a decline exceeding 30%, with substantial heterogeneity across and within countries. We show that banking market consolidation is a key driver of closures, while profitability and local economic growth mitigate them. Branches in highly urban or very rural areas close more often. Competitive effects are nonlinear: moderate clustering lowers closure risk, but intense competition increases it. These patterns differ markedly across CESEE banking systems during the entire period we analyze. JEL Classification: D53, G21, R12

Keywords: banks; consolidation; debranching; spatial distribution (search for similar items in EconPapers)
Date: 2026-07
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20263256

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