Credit Agricole and BP

PARIS (AFP) French bank doctrine Agricole, champion of the life-sizegest European banks by slap-upisation, reported a doubling of net profit to 1. 0 billion euros ($1. 42 billion) in the foremost quarter, on Friday. The price of shares in the bank showed a gain of 1. 40 percent to 11. 23 euros in a securities industry up 0. 57 percent overall. The kayoedcome, marking an enlarge of 112 percent from the result 12 months ago, was in line with average estimates of analysts as polled by Dow Jones Newswires.At CM-CIC Securities, analyst Pierre Chedeville comwork forceted The free radical is showing its chief(prenominal)(prenominal) characteristics again operating(a)(a) efficiency and an excellent control of bams, very cautious policy for provisioning, and financing and investment activities steady. buzzword chief administrator Jean-Paul Chifflet express that belief Agricoles direfulct exposure to Greek debt was 631 million euros at the barricade of March. credit rati ng Agricole is one of the few foreign banks to control a Greek bank, in the form of Emporiki bank. alliance History Frances green bank was nicknamed for its root in agriculture. accredit Agricole, composed of the Caisse Nationale de commendation Agricole and 90 regional banks, which in concert own 90% of the Caisse Nationale, is a unique cooperative organization and one of the most important banking groups in France. In the mid-1800s, it became clear that there was a need for country credit in France, especially by and by a crop failure in 1856, which left arcadian areas in dire straits. One of the main causes of low deed was a lack of adapted credit for originateers, who often could non meet banks normal credit requirements.In 1861, the government attempted to remedy this problem, asking citation Foncier to establish a department expressly for agriculture. exactly the nakedly formed Societe de conviction Agricole staring(a) little. By 1866, though almost steps towar ds mitigatement had been suggested, the bulge outbreak of the Franco-Prussian enjoin of war prevented their implementation. The family folded in 1876. Later, several monetary cooperatives sprang up independently among farmers, operating in agrestic towns on a system of mutual credit.In 1885, the first society for agricultural credit was founded at Salins-les-Bains in the Jura the uttermost amount of credit a farmer could get was FFr500, the price of a yoke of oxen. By the end of the century, when talk of modernizing Frances agricultural economy became more urgent, it was decided that this system of local anaestheticized credit was more suit equal for the rural population than credit emanating from a big central bank. In 1894, the house of Deputies proposed a police to organize personal or short-term rural credit, based on the methods of the small credit societies already in existence.The integrity formalized the requirements for the societies formation, do them exempt from measurees, and gave them a monopoly on state-subsidized loans to farmers. In 1897, the Bank of France made money avail suitable to the banks through the minister of agriculture, and in 1899, a law was passed to manufacture regional banks to act as intermediaries between the local societies and the minister of agriculture. The local cooperatives were self-governing societies with posited liability. Their members were mostly idiosyncratic farmers. distributively local cooperative was affiliated with a regional bank, where it transferred all deposits and obtained funds for loans. The local banks elected a committee to control the regional banks, which were mainly responsible for medium- and long loans. Thus, the hierarchy of recognize Agricole was established. One of the reasons credit Agricole was so successful was its reliance on individual farmers. In the mid-1800s most of Frances agricultural produce came from small farms rather than large estates, and the French gove rnment wanted to preserve the small family farm for several social and economic reasons.For instance, it was astray believed that small farmers cultivated the soil most intensively and so made better use of it. It was in like manner thought to be better to gravel some(prenominal) small family farms than to create a proletariat to work on large farms. Nevertheless, Frances agricultural methods were in need of modernization, and Credit Agricole helped small farmers get in the altogether equipment and supplies to change production. In 1910, a law established long-term personal credit for the purchase of land to encourage early men to farm.Only small holdings could acquire these loans, which could not exceed $1,600, and only young farmers were eligible their characters were the basis for their credit. When World War I broke out in 1914, the European banking system was under severe duress collectable to difficulties with the gold exchange. However, gold was still in circulation in France and the Bank of France was able to increase its issue of notes, restoring some financial order. Throughout the war, agricultural production was at a minimum, and Credit Agricole, still a young institution, was able to survive only through act support from the government.Agricultural proceeds did not regain its prewar level until 1930. In 1920, a law was passed to organize the office National du Credit Agricole, a national society run by civil servants and the elected voxs of the regional banks but controlled by the governmentthe minister of agriculture would name its turn toor. Office National du Credit Agricole also became responsible for the scattering of treasury loan funds and for rediscounting the short-term loans of local and regional societies.In 1926, the name was changed to Caisse Nationale de Credit Agricole (CNCA). As Credit Agricole grew in resources and capacity, it began to help not only individual farmers but also the cooperative trade movement gaining ground among agricultural groups. These naked agricultural cooperatives, which organized industries in a way similar to unions, could often not raise the money to organize, and they needed Credit Agricoles support. In turn, the cooperatives helped Frances recovery later on the war.World War II hurt agriculture less than the first war had, and after the war, there was a period of rapid maturement, spurred on by Credit Agricoles loans. Between 1941 and 1945, under the Vichy government, a Bank ascertain Commission was established and attempts were made to prevent the creation of new banks or branches. After 1945, however, the Bank of France and the another(prenominal) main banks were nationalized. A hierarchy was born, with the Ministry of finance and the Bank of France at the top, giving the government the ability to sway the distribution of credit.In this sense, it won even more power to help upgrade Credit Agricole. After the war, agriculture underwent a massive modernizatio n programme. Credit Agricole played a major(ip) part by supplyinging hood for fertilizer, equipment, electrification, and improved water supplies. Since agricultural credit was subsidized by the government, and out-of-pocket to the quality of Credit Agricoles decentralized commercialised network, agricultural institutions had the most rapid expansion rate of all the banks. Between 1938 and 1946, the capital funds of the regional societies incr sticking(p) from FFr1. billion to FFr28 billion. Credit Agricole extended its medium- and long-term loan trading trading operations and the government established special loans for farm equipment, causing a big increase in the number of farmers driving tractors. Financing for small farms continued as late as 1958, cooperatives were favored over large farms. But Frances farm productivity was below that of most other European countries, and some diabolical the low productivity partially on the credit advantages given to small farms, whi ch kept competition at bay.Earnings did not improve and the industry remained dependent on loans. About this time, the government began to apply cockeyed lending ceilings to the whole financial system to restrain the money supply and hold set down inflation. This led many banks to diversify into overseas furrow and the Euro dollar bill market. A boom in French exports also created a adopt for French banking expertise in the export markets. Credit Agricole, however, held rump at first from international expansion, while growing rapidly with the French economy.In 1966, the state decided to allow Credit Agricole to widen its operations to reverse more flexible than a bank strictly for farmers. Under the new reform, Credit Agricole was allowed to make loans to individuals and organizations not specifically connected with agriculture. It was also allowed to create subsidiaries. One of the most important subsidiaries it created was the Union dEtudes et dInvestissements, which used i ts resources to finance individual investments.In 1967, the government announced that all resources collected by Credit Agricoles regional and local banks, previously deposited in the French Treasury, would now be deposited with the Caisse Nationale de Credit Agricole. In 1971, the Union dEtudes et dInvestissements, with an eye on important knowledges in the food processing business, created another subsidiary, LUnion pour le Developpement Regional, which was mainly to raise loans to agricultural and food processing industries or other similar operations in regions where they would create jobs.In July of the bordering year, the minister of finance, Giscard dEstaing, warned Credit Agricole roughly its diversification, pointing out that its purpose must stay mainly agricultural and its activities respite financial and social profit, a recurring political theme in Credit Agricoles development. Other large banks complained about Credit Agricoles monopoly on farm credit and its tax- free status, which had allowed it to grow into one of the largest banks in France, while those touch on about farm aid worried that the banks purpose would be diffused.Critics blamed Credit Agricoles expansion on the other banks inertia and politicians reluctance to gust Credit Agricole for fear of losing the support of farmers. By 1975, Credit Agricole had begun its international activities, concentrate mainly on foreign agricultural loans and export companies. In 1977, when the U. S. dollar was low, Credit Agricole ranked briefly as the biggest bank in the world. In 1978, Credit Agricoles profit of FFr400 million was more than the other three main French banks combined.The bank had begun to finance housing (it is now the leading owe lender in France), silo construction, and exports, and had also become a money market lender. After other French banks campaigned for several months against Credit Agricoles advantages, the government lastly curtailed those privileges. Credit Agric oles surpluses began to be taxed as profits, and for three years, the bank was prohibited from inauguration new branches in towns where it had no official purpose and competed unfairly with other banks. The compensation the government offered may open added more to Credit Agricoles growth than the privileges that were taken away.Before the new rules, the bank could only make direct loans in communities of 7,500 people or fewer, but under the new restrictions that limit was extended to 12,000. Credit Agricole continued to push forward with international expansion. In 1979, it opened its first international branch, in Chicago London curtly followed, and a New York City branch opened in 1984. By then, Credit Agricole was also extremely active in funding development in rural areas for roads, telephones, and airports, and the government was encouraging the bank to help out small industry.By 1981. Credit Agricole had several good subsidiaries Segespar, which sended the investment-and -deposit service group Voyage Conseil, a French travel agency Eurocard France, a payment-card fellowship Soravie, an insurance company for sales in local branches Unimat (now Ucabail) and Unicomi, which financed equipment and industrial and commercial building Unicredit, which provided loans for businesses and Union dEtudes et dInvestissements, now heavily involved with rural development.In January, 1981, Credit Agricoles charter was changed again to allow the bank to provide loans to companies with fewer than 100 employees, whether or not they were connected with agriculture. The government also eased its credit limits for farmers and bearbreeders, and Credit Agricole was no longer limited to lending in towns with fewer than 12,000 inhabitants. However, this wider range was balanced by new limits. Credit Agricoles tax bill was put in line with those of other corporations, at 50% of its profits. In addition, some of the banks earlier surplus earnings had to be channeled back into the governments loan subsidies.In May, 1981, the collectivizeds won the national election. Soon all major French banks that werent already nationalized became state controlled, and over the next few years, the government imposed a domestic policy of economic austerity in an attempt to reduce inflation, renew industry, and balance its foreign trade account. The next year, Credit Agricoles foreign assets rose by almost 60%. By 1982, only one-third of its funds went to agriculture. Credit Agricole had already acquired significant have it off in the euroloan market, and at the beginning of 1983, it ranked among the most prominent banks in Europe in this area.By 1984, Credit Agricole had opened foreign branches in North America, Europe, Asia, Latin America, Africa, and the Middle East. Some Credit Agricole members were upset by the banks forting international force. In 1984 an official of a farmers union told line of credit Week that given the dramatic situation of hundreds of thousa nds of farmers, Credit Agricole has better things to do in France. Nonetheless, Credit Agricole management insisted that international business could only strengthen the companys ability to help farmers in France. In 1985, Credit Agricole established a subsidiary called Predica to enter the life insurance market.Capitalizing on Credit Agricoles broad branch network, Predica had become the second-largest life insurer in France by 1988. As the French economy improved, the government began to ease regulations and remove limitations on capital markets. In 1986, a new conservative government came into power, and several Socialist officials were replaced almost immediately, including Jean Paul Huchon, Credit Agricoles general film director. A plan to remove CNCA from state control had been brewing for some time many other banks were in the process of becoming denationalized.Huchon had opposed this plan for Credit Agricole vehemently enough to cause his dismissal. His successor was Bern ard Auberger, a former director of Societe Generale with ties to the Gaullist Party, which had campaigned to rid CNCA of state control. The new government also created easier bourse membership rules that allowed outback(a) interests to buy into investment brokers. Following the trend of many banks after this deregulation, in 1988 Credit Agricole purchased controlling stakes in two Paris stockbrokers, Bertrand Michel and Yves Soulie. Finally, in 1987, the government began to take steps towards freeing CNCA from state control.On February 1, 1988, the state sold 90% of CNCAs common stock to its regional banks and the company was structured with FFr4. 5 billion in capital stock. Most of the rest of its stock went to employees, and the government holds a small stake. Soon after the mutualization, the newly mystical Credit Agricole began merging the Caisses Regionales to eliminate redundancies. By January, 1990 the number of district banks had been minify from 94 to 90 and this number is expected to shrink substantially before the rationalization is over. The passageway to private ownership was not completely smooth, though.A boardroom struggle in 1988 led to the exit of Bernard Auberger. Philippe Jaffre, who was the finance ministrys representative on CNCAs board of directors, was Aubergers surprise replacement. In 1989 Credit Agricole ceased to have a monopoly on the shrinking number of subsidized loans to farmers. In losing this monopoly, Credit Agricole mixed-up an important, captive customer group. The bank should be able to compensate for this loss, however, with the new business it expects to pick up as a result of the lifting of restrictions on its business.When Credit Agricole lost its monopoly on subsidized farm loans, it was also freed of the ludicrous government restrictions on its business. Now Credit Agricole operates in much the identical way as any other French bank, and it expects its business to improve rather than suffer as a result of th is status. Under Jaffre, Credit Agricole, like all European enterprises, faces the challenges that the 1992 unification of the European Economic society exit bring. The bank has already made a successful transition from a purely agricultural bank into a full-service bank.Privatization should give Credit Agricole the freedom and flexibility it go forth need to face these challenges, but it will have to struggle with its slightly awkward structurethe 90 regional banks that control parent CNCA diffuse central decision-making powerand tackle operating costs that are much higher than its competitors. If it can surmount those obstacles and capitalise on its tremendous domestic branch network, Credit Agricole will be an even more formidable European competitor than it already is. capitulum Subsidiaries Union dEtudes et dInvestissements Unicredit (98. %) Sopagri (52. 8%) Unimmo France (99. 6%) Unidev Sofipar (52. 6%) Ucabail Segespar Segespar-Titres (50%) Predica (48%) Unibanque Sogequ ip Cedicam (50%). Source International Directory of Company Histories, Vol. 2. St. James Press, 1990. Credit Agricole in management reshuffle Kit Chellel 01 declivity 2010 The chief executive of Credit Agricole corporate and investment bank has been replaced after two years in the job as part of wholesale management changes across the French bank under the direction of new group chief executive Jean-Paul Chifflet.Patrick Valroff, aged 62, will stand down to make way for Jean-Yves Hocher, who will also continue in his present-day(prenominal) role as deputy chief executive of the group. The board of Credit Agricole held a meetings on yesterday and today before announcing a serial of management changes. Jean-Paul Chifflet was appointed chief executive in March and has indicated that he intends to overhaul the groups strategy. The new 10-year strategic plan will be released later this month. Within Credit Agricoles corporate and investment banking unit, a new xecutive structure sees deputy chief executive Pierre Cambefort pickings over responsibility for coverage, investment and corporate banking and the international network, while head of risk Francis Canterini has been appointed deputy chief executive in charge of support functions. Elsewhere, Alain Massiera, the deputy chief executive of Credit Agricole CIB has been appointed as head of the private banking business. It is understood that Valroff was brought in at the height of the financial crisis refocus the business, a role which he has completed successfully side by side(p) three successive quarters of profits.A spokesperson confirmed he would remain at the bank in another capacity. In August, Credit Agricole recorded an 89% rise in profits to 379m following strong performance in its corporate and insurance divisions. Other management changes expose today include the appointments of Yves Nanquette as chief executive of Credit Agricole LCL (retail) refilling Christian Duvillet, and Jerome Grivet as chi ef executive of the banks assurance arm replacing Bernard Michel. Thierry Langreney took over as chief executive of the Pacifica insurance division from Patrick Duplan. All three outgoing chief executives have retired.