This has encouraged national businesses to aim to be global businesses and the global businesses to target national markets. However, the roughness in the control of market shares in the past has tended more towards monopolies but, structures have not stayed the same, these have become, in general, oligopolies. This aspect of globalisation has thus changed the very nature of competition and the markets will move forward into a new direction of perfect markets if globalisations are sustained and its true objective is achieved. The Banking industry is no exception. Competition in the banking sector depends largely upon the efficiency with which financial services are produced, the quality of financial service produced and the relative degree of innovation in the sector. (Claaessens and Laeven). 1 This however depends upon how the banking sector competes with each other and what is the nature of the financial markets. This is important because the nature of the markets in the financial sector Banks enable consumers to do essential functions such as saving, investing and storing money or money equivalents. Therefore, banks tend to have a loyal and important segment of consumers on whatever jurisdiction they have chosen to operate in. The main features of the banking industry, regardless of jurisdiction, having been a long-standing business are; the ready demands for its products and services (With economic downturns), and protection enjoyed from the national governments. Moreover, because of this, feature it has experienced a more gentle and structured capital capability regimes.
Due to the impact of globalisation on the banking sector, Spanish banks are no exception. This has urged certain market control strategies from the banks and these strategies unite to determine as to what exact form of market does the banking industry of a particular country and time look like. Economic Literature has always been able to point out the extent of competition in banking industries: "Competition has become a recurrent topic in the banking literature. Specifically, during the last decade a great deal of empirical work has attempted to measure the level of competition prevailing in European banking markets. The beginning of the third stage of the Economic and Monetary Union, in January 1999, and the projected changeover to the Euro triggered the interest of researchers in this issue" (Rozas, 2007)2. This paper has as an objective the examination of the Spanish banking system and the determination of it having acquired the market structure of an oligopoly with years. This will be