This research aims to empirically analyze spatial competition of branch network in the banking industry. Theoretical prediction of the spatial competition effect is ambiguous because business-stealing effect and positive externality in this industry would have opposite impacts on a bank's profitability of opening a branch. I collect address information for all bank branches in Taiwan for a 35-year period (from 1981 to 2016). The addresses of all bank branches are geocoded to quantitatively analyze spatial competition in the choice of branch location. Controlling for observed socioeconomic variables, I estimate the effect on the number of a bank's branches in a township caused by nearby branches operated by own and rival banks. I find that the competition of rival banks' branches within the same township has a negative but diminishing effect on the profitability of opening a branch. On the other hand, there is a positive effect from branches of the same bank in nearby townships, suggesting the existence of economies of density in this industry.