Green light for France's post office/bank

1st December 2005, Comments 0 comments

PARIS, Nov 30 (AFP) - France's planned Postal Bank received official operating authorization Wednesday, allowing it to serve some 28 million clients who currently use the financial services of the postal system.

PARIS, Nov 30 (AFP) - France's planned Postal Bank received official operating authorization Wednesday, allowing it to serve some 28 million clients who currently use the financial services of the postal system.

The bank, expected to begin operations by January 1, 2006 at the latest, won approval from the CECEI, a committee that supervises the activities of credit and investment establishments.

In a swift response, four leading French banks said in a joint statement they would bring the matter before the European Union's executive commission, arguing that "the creation of the Postal Bank will introduce multiple competition distortions."

The four banks taking the action are BNP Paribas, Banque Populaire, Crédit Agricole and Société Générale.

They are said to be concerned about the financial arrangements linking the post office and the Postal Bank, as the bank will be able to make use of the customer counters and the sales staff -- including 7,000 financial counselors -- of the post office.

Copyright AFP

Subject: French news

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