In a study of retail banking in Spain, the question of efficiency is a basic point in any discussion on its capacity to compete in a single banking market. This study deals with the analysis of retail banking efficiency in our country from the point of view of spatial competition in the branch network. The work aims to rationalize the analysis and discover the variables that must be taken into account to value the extent to which the current structure of the branch networks of banks and savings banks are appropriate to the present framework of competition.