Monday, March 21, 2016

Crédit Mutuel “The banker who enriched sleeping, it’s over” – Les Echos

Take the head of the Confederation while the group is divided. What message do you Arkéa Crédit Mutuel, which wants autonomy?

I wrote a letter to all group Federations presidents to tell them my conviction that reform Confederation of Crédit Mutuel, desired by the ECB, respect the principle of subsidiarity. The function of the central body is to defend the collective interests of the group, its prudential consistency and brand “Crédit Mutuel”. Everything else is the regional groups. I received the support of 16 federations 19. This letter is a hand extended Arkéa representing approximately 10% of our overall results. I hope they come back to participate in the life of the Crédit mutuel which they belong from the beginning, they come to the Confederation board, we exchange, we decided together. We have a common heritage: the confederation has the brand “Crédit Mutuel” culture of proximity and decision closer to the ground. The reform is a collective work, it represents a good opportunity to return to normal operating mode. A Arkéa to seize this opportunity.



The reform initially fixed investment thresholds beyond which the federations had to seek permission from the Confederation …

At this point, the statutes do not provide investment threshold. That said, it is our common interest to respect the prudential coherence and solidarity within the Crédit Mutuel group, and this applies to all the federations of the group, including CM11 [the eleven federations called "East", Ed ]. What interests me is the consistency and group development: we built something great, thanks to the contribution of all regional groups: in 2014, the ECB has considered that we were among the banks solid eurozone. Crédit Mutuel Nord Europe has recently bought two networks in Belgium, it has not raised a question.



A court decision prohibited transform Confederation which has an associative status, credit institution. What are the consequences?

We want to be blameless in regard to the European Central Bank which is our supervisor. For example, we reduced the size of the Confederation board from 34 to 18 members, and we will nominate two independent directors. As part of the reform, questions will also be answered: Arkéa was hostile to that there is a common general direction Confederation and CM11. It will not be the case. Pascal Durand, who headed the Federation of Laval, becomes the CEO of the Confederation and will have no other function in the group. We have appealed the court decision that blocked the transformation of the central organ cooperative society to provide for the future. Meanwhile, the ECB may supervise an association, there are other cases in Europe. But it is true that, for the supervisor, it is preferable to control credit institutions, particularly if it imposes sanctions.



What are your priorities for Crédit Mutuel?

the issue is development, taking into account the three challenges we face. A regulatory challenge of all: the new obligations imposed on banks reduce their profitability and lead some to remove tens of thousands of jobs. Challenging behavior then that evolve with the explosion of digital. Our job is to offer all the intangible and multi-year services and support the protection of our customers: we have to be much more than a bank. Today, more than half of our results resulting insurance. In telephony, we expect 1.5 million subscribers and represent a third of the French market of protecting homes against theft. Finally we face a financial challenge in a negative interest rate environment and the flat yield curve, which upset the financial industry since we monetize our business without gains from financial transformation.



How do we get out of the spiral of negative rates?

central banks have done the right thing after the financial crisis by flooding the market with liquidity. How, now, out in an orderly manner of this? Everything depends on the economic outlook: are emerging late in the economic cycle and the world he enters into period of slow growth? This is the debate on the secular stagnation. One of two things: either global growth recovers at a pace above 3%, and central banks should quickly get out of the political commitment in the 2000s either global growth remains below 3%, and their political should remain accommodative.

What are the consequences for the banks?

the banker is enriched by sleeping , It’s over. The banker who makes believe that its services are free, it’s over too. We need to build customer loyalty with a balanced service that offers the best price / quality ratio.



But you are in competition with online banking completely free …

online banking is part of the network of banks daily: we have 1 billion hits a year on our servers Crédit Mutuel and CIC. But the free Remote banks are made for positive interest rate periods. Besides, why do they really free? And how do they do in the current context, to be profitable?



French banks have all started cost reduction programs, what about Crédit Mutuel?

We must be strict on overhead, but we have a strong social compact within the group: we do not do socially in our bancassurance activities. We ask the employees a lot of commitment and adaptation, but in return we are training by investing more than 5% of payroll employment and defend. Mutualism, it is the choice of the strength and the long term, we do not have pressure from the markets.



Is this really differentiating the customer?

The mutualism offer an appropriate response to resolve the debate owner- customer. It is also a form of organization that ensures local ownership and cares about the long term, two features that meet very current demands and have immense benefits.



Will you reduce your branch network?

We have no closing goal ‘agencies. The network lives, evolves. That said, I note that the towns with less than 10,000 inhabitants are hard hit by the disappearance of agencies and shops, which poses economic leadership issues. We are present in all mesh and it should not be that we lose.



they are the tech giants threaten the banks?

They represent a particular threat to the means of payment, electronic banking their activity is watching closely. But security, why banks have a particular skill, is a value that will grow in the future. I hope in any case that all players will be subject to the same regulations and constraints.



Crédit Mutuel he intended to be a shareholder of the media group Ebra (L’Est Républicain, The Last News of Alsace etc.), led Michel Lucas?

We are shareholders through BFCM (Banque Federative du Credit Mutuel), this press division, which will led by Michel Lucas. A pole which aims to be profitable …

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