La Banque Postale to introduce loans service in local branches
The board of governors of France’s La Poste has approved a new financing model for La Banque Postale to provide loans for customers of its local branches. The new model comes as the result of negotiations between the postal bank, the Parliament-controlled financing agency Caisse des Dépôts et Consignations (CDC), Franco-Belgian bank and Dexia SA.
La Poste said the new loans programme will be based on a joint venture, 65% owned by La Banque Postale and 35% by the CDC, offering local communities better access to financing.
Buying out Dexia’s municipal finance subsidiary Dexma, the new venture will have a status as a credit institution, and will take care of the marketing and associated administration of managing new loans.
It will make use of various resources of Dexia’s Dexia Credit Local unit so that its services can be launched quickly, said La Poste.
Jean-Paul Bailly, chairman and CEO at La Poste, said: “As organisations working for many years in the development of the regions, La Poste and La Banque Postale are now creating a new phase in a service of widespread interest.”
La Banque Postale – postal bank – currently manages EUR 5.2bn through 11.4m accounts for 10m customers, claiming a 10.8% share of the consumer banking market.
The new venture is expected to see the first loan offers being made towards the end of 2012, subject to the approval of banking and competition authorities in France.
Philippe Wahl, CEO of La Banque Postale, said: “La Banque Postale will enter this new market by following the same principles as all its new activities: a gradual launch, with a policy of managed risk and a model of profitable growth.”
