La Poste may venture into consumer credit

The French government is reportedly preparing to authorise La Poste, the national postal services group, to sell consumer credit as part of agreements with one or several banking groups. The move would allow the public group to face more effectively the deregulation of the courier sector in 2006. The major banks, meanwhile, are against the proposal, which they say would distort competition, and central bank Banque de France also opposes it, on the grounds that it would destabilise the sector.