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Country Commercial Guides
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CHAPTER VIII. TRADE AND PROJECT FINANCING
A. Banking System
The French banking system underwent a fundamental structural reform in 1984, which removed most of the distinction between commercial banks and merchant banks and grouped most financial institutions under a single supervisory system. The largest French commercial banks, such as Societe Generale, Credit Lyonnais, Banque Nationale de Paris, Credit Agricole, Paribas, CIC, and Credit Commercial de France, rank among the largest banks in the world. These commercial banks offer all classic financing instruments, including short, medium, and long-term loans, short-and medium-term credit facilities, and secured and non-secured overdrafts. Commercial banks also assist in public offerings of shares and corporate debt, as well as mergers, acquisitions and takeovers. Banks also offer hedging services against interest rate and currency fluctuations. France also has more than 170 foreign banks; some have sizeable branch networks.
The Bank of France ("Banque de France") is a member of the European System of Central Banks (ECSB) and the Banque de France's governor sits on the executive board of the European Central Bank. The Banque de France will continue to issue franc-denominated banknotes until the introduction of euro-denominated notes in 2002.
The Banque de France participates in the regulation and supervision of the French banking and financial system. Its governor is the chair of the Committee on Credit Institutions, which grants or withdraws banking licenses. The governor is also president of the Banking Commission, which ensures that banks adhere to banking regulations.
The French government has sold its majority equity stakes in major banks and insurance companies. However, it retains ownership of the Caisse des Depots et Consignations and minority stakes in several major financial institutions, including Credit Lyonnais.
B. Foreign Exchange Controls
All inward and outward payments must be made through approved banking intermediaries by bank transfers.
Repatriation of Capital and Earnings. There is no restriction on repatriation of capital provided this is carried out through an approved bank and the investment in question was authorized. Similarly, there is no restriction on transfers of profits, interest, royalties, or service fees, provided the investment was authorized and made through approved banks.
Businesses. Foreign-controlled French businesses are required to have a resident French bank account and are subject to the same regulations as other French legal entities. The use of foreign bank accounts by residents is permitted.
Individuals. France has few controls on the use of foreign exchange. For exchange control purposes, foreigners are considered to be residents from the time they arrive in France. French and foreign citizens are subject to the same rules. Residents are entitled to open an account in foreign currency with a bank established in France and to establish accounts abroad. Residents must report the account number for all foreign accounts on their annual income tax returns. French-source earnings may be transferred abroad, without limitations if carried out through an approved bank.
C. General Financing Availability
Foreign companies have access to all banking services described in Section A. The other main financing is through French financial markets. The center of the French stock market is the Paris stock exchange (the "Bourse"). More details can be found in the Investment Climate Section of this report.
D. Export Financing
France has a sophisticated export financing market. In general, large commercial banks provide the bulk of export financing. These loans can be made to the French supplier or the foreign buyer. Most major U.S. banks and the U.S. Export-Import Bank provide both financing and technical assistance for the exports of American companies to France.
Eximbank's web site "www.exim.gov" provides information on its export credit insurance, pre-export financing through working capital guaranteed loans, and medium and long-term loans and guarantees to overseas buyers.
COFACE. The Compagnie Francaise d'Assurance pour le Commerce Exterieur (COFACE), insures exporters on commercial terms against short-term non-payment risks, principally involving trade with other OECD countries. These include the insolvency of private buyers, unfavorable currency fluctuations on ordinary business, and political risks in OECD countries. In these cases, COFACE acts like any other insurer: it set a competitive premium based on perceived risks.
COFACE's second function is to support French exporters in markets that conventional insurance companies are not willing to cover due to the perceived risks. These involve large projects, such as aircraft financing, as well as high risk markets. In these cases, COFACE acts on behalf of and with the backing of the French Government. This category includes market survey insurance, medium-term credit insurance on large-scale projects and capital goods, investment risks in foreign countries, and exchange rate guarantees on major contracts or large amounts. In this case, COFACE acts as the manager for the French government.
COFACE also provides "expert credit insurance" for French agricultural exports into "high risk" markets. These coverages are usually in direct competition with U.S. agricultural exports.
E. Correspondent U.S. Banking Arrangement
All large French banks have correspondent U.S. banking arrangements. Many French banks also have subsidiaries or branch offices in the United States:
Natexis (Houston, Los Angeles, New York)
Bank Nationale de Paris (Chicago, Dallas, Houston, Los Angeles, Miami, New York, San Fransisco)
Banque Paribas (Chicago, Dallas, Houston, Los Angeles, New York, San Fransisco)
Banque Sudameris (New York, Miami)
Caisse Centrale des Banques Populaires (New York)
CIC-Banque Transatlantique (Washington)
Compagnie Financiere de CIC et de l'Union Europeenne (New York)
Credit Agricole Indosuez (Chicago, Houston, New York, Menlo Park, San Fransisco)
Credit Commercial (New York, Philadelphia, Wayne)
Credit Lyonnais (New York)
Societe Generale (Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York, Orlando, Philadelphia, San Fransisco)
Below is a list of major American Banks present in Paris:
American Express International Banking Corporation
11 Rue Scribe
75009 Paris
Tel: (33) 1 47 14 50 00
Fax: (33) 1 47 14 51 99
Mr. Piero GRANDI, Président Directeur GénéralBank of America
43-47 avenue de la Grande Armée
75782 Paris Cedex 16
Tel: (33) 1 45 02 68 00
Fax: (33) 1 45 01 77 89
Mr. ODON DE VIENNE, Président Directeur GénéralBank of New York
13-15, boulevard de la Madeleine
75001 Paris
Tel: (33) 1 42 97 90 20
Fax: (33) 1 42 97 43 73
Madame Deidre PEYROUX, RepresentativeChase Manhattan Bank SA
42 rue Washington
75408 Paris Cedex 08
Tel: (33) 1 53 77 10 00
Fax: (33) 1 53 77 10 50
Mr. Jean-Olivier BARTHOLIN, Président Directeur GénéralCitibank
Citicenter, 19 Le Parvis
92073 Paris La-Défense Cedex 36
-Citibank International PLC (retail banking)
Tel: (33) 1 49 06 10 10
Fax: (33) 1 49 06 15 16
Mr. Bernard NOEL, Président Directeur Général
-Citibank NA (investment bank)
Tel: (33) 01.49.06.10.10
Fax: (33) 01.47.67.07.04
Mr. Jean-Claude GRUFFAT, Président Directeur Général
Morgan Guaranty Trust CO of New York
(JP Morgan)
14, Place vendôme
75001 Paris
Tel: (33) 1 40 15 45 00
Fax: (33) 1 40 15 44 77
Mr. Philippe LAGAYETTE, Président Directeur GénéralRepublic National Bank of New York
20, Place Vendôme
75001 Paris
Tel: (33) 1 44 86 18 61
Fax: (33) 1 40 20 94 85
Mr. Robert Sevin, Président Directeur Général
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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