DOCSLIB.ORG

Government Banking

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Government Banking Government Banking Government Banking New Perspectives on Sustainable Development and Social Inclusion From Europe and South America Kurt von Mettenheim & Maria Antonieta Del Tedesco Lins © KONRAD ADENAUER FOUNDATION – 2008 EDITORS Kurt von Mettenheim Maria Antonieta Del Tedesco Lins LAYOUT AND DIAGRAMATION Caio Fábio Machado COVER DeSIGN Patrícia Azevedo PRESS Editora Vozes X000 Government Banking : New Perspectives on Sustainable Development and Social Inclusion From Europe and South America / Kurt von Mettenheim & Maria Antonieta Del Tedesco Lins, [editors]. - Rio de Janeiro and Berlin : Konrad Adenauer Foundtion , 2008. 232 p. ; 24 cm. ISBN – 978-85-7504-122-8 1. Government banking. 2. Political economy. 3. Social economy. 4. Microcredit. I. Mettenheim, Kurt von & Lins, Maria Antonieta Del Tedesco. II. Konrad-Adenauer-Stiftung. CDD- 303.4 Table of Contents Introduction, Kurt von Mettenheim 7 Part I – Government Banking in Europe 39 Chapter 1 Community Banking Networks and Financial Exclusion:How Savings Banks and Cooperative Banks Contribute to Financial Inclusion in Germany, Anke Turner and Ingrid Größl 41 Chapter 2 Commitment to Corporate Social Responsibility through Supportive Actions in the Banking Industry, Jean-Yves Saulquin 65 Chapter 3 European savings banks and the future of public banking in advanced economies. The cases of France, Germany, Italy and Spain, Olivier Butzbach 85 Part II – Government Banking in Latin America 127 Chapter 4 From Development Banking to Microfinance: Reflections on the Recent History of Banking and International Cooperation Policies in Latin America, Manfred Nitsch 129 Chapter 5 The Chilean BancoEstado; Inclusive Finance; Expanding Borders, José Manuel Mena V. & Enrique Errázuriz L. 135 Chapter 6 Reform of Brazilian Federal Public Banks: Policies, Program, Doctrinal Basis and Theoretical Affinities, Carlos Augusto Vidotto 155 Chapter 7 Still the Century of Government Savings Banks? A Case Study of the Brazilian Federal Government Caixa Econômica Federal, Kurt von Mettenheim 179 Conclusion, Kurt von Mettenheim & Maria Antonieta Del Tedesco Lins 197 Notes on Contributors 223 List of Tables 225 List of Figures 228 Introduction1 Kurt von Mettenheim This volume makes available to a wider academic and policy making public the proceedings of an international seminar on government banking at the São Paulo Business School of the Getulio Vargas Foundation (Escola de Administração de Empresas de São Paulo, FGV-EAESP) in August 2006. Scholars, policy makers, bank executives, and representatives from multilateral financial institutions from Europe, North America, and Latin America gathered to reassess the role of government banks, especially in terms of their capacity to accelerate sustainable development and social inclusion. Scholars included economists, political scientists, financial economists, and financial statisticians, all sharing interest in better understanding the role of government banks in comparative perspective. In April 2006 the conference conveners circulated a discussion paper that reviewed research then underway on Brazilian federal government banks and presented a variety of themes for exploration at the seminar in August. The following questions were posed to authors: 1) What regional and national traditions of public banking can contribute to sustainable development and social inclusion? 2) Are there “varieties of financial capitalism”? 3) Does the debate in financial economics about bank-centered and market- centered financial systems supply new perspectives on varieties of capitalism and broader concerns about development? 4) What reforms are most effective in bank-centered financial systems? 5) Are critics right? Do public banks cause financial repression? These questions inspired different foci by participants. Some chose to focus empirically on developments within specific countries. Some chose to focus on the historical trajectory and current policies of specific government banks. Some chose to pursue comparative analysis of small number of countries. Some chose to 1 Parts of this introduction are based on or taken from the manuscript “Commanding Heights: Statecrafting Federal Government Banks in Brazil” in review at the Penn State University Press. compare across national and regional experiences. Although several participants were unable to complete or permit publication of materials presented, additional contributions from scholars in Europe and Brazil working on issues of public banking expanded the scope of the volume. The differences between seminar proceedings (on government banking generally) and this volume (a focus on savings banks in Europe and South America) reflect our attempt to follow the rapid evolution of thinking about finance and development during the last years. In a broader sense, the volume remains as it started: a search for new perspectives on domestic banking in the 21st century that is “post-Washington Consensus.” During the 1980s and 1990s, international financial institutions and policy circles advocated liberalization and privatization as the preferred means to accelerate growth.2 Since 2000, it has become increasingly clear that domestic banking systems have taken a variety of different paths with government and savings banks retaining important roles. Across Continential Europe, savings banks, cooperative banks, and other non-profit and government owned and controlled financial institutions have reformed and modernized during European integration and the opening of domestic banking systems to competition. In Latin America, government savings banks remain important domestic actors that have modernized and retained or expanded market sh a r e of dome s t ic ba n k i ng . T he s e t r e nd s s ug ge s t t h at coor d i n ate d c apit a l i s t s y s te m s i n advanced economies and neo-developmental states in Latin America share important features exemplified by government banks. This volume explores the policies and experiences of savings banks and other government banks toward financial inclusion and sustainable development. This volume is controversial because it taps deep differences about government banks in the disciplines of finance, economics, politics, sociology, management, and public policy. Despite these differences, recent research suggests that banks (setting aside the question of government banks for the moment), far from being doomed to being replaced by financial markets, appear instead still to be central agents of growth. As Studart notes: “The supply of finance is causally determined by banks: it is banks, and not savers, who hold a key position in the process of growth.”3 The question raised in this volume is whether growth can be channeled by government banks toward sustainable development and social inclusion. This implies dealing with complex and deeply contested theories and concepts about banking and finance, government intervention, public policies, and development. The chapters presented herein are therefore cautious in the sense of providing case 2 From John Williamson´s Latin American Adjustment: How Much Has Happened. (Institute for International Economics, 1990), through the World Bank Policy Research Report, Bureaucrats in Business, and including policy analyses from the Inter-American Development Bank such as Unlocking Credit: The Quest for Deep and Stable Bank Lending (Johns Hopkins University Press, 2004) and Caprio, Gerard (et al) eds. The Future of State Owned Financial Institutions (Brookings Institutions, 2004), consensus remained that privatization is preferred policy. 3 Studart, R. Investment Finance in Economic Development (Routledse, 1995). p. 1 8 studies and empirical evidence, often on the micro and organizational level of analysis. This empirical focus is warranted given the deeply contested views about these institutions. Government banks are banks in the core sense of accepting deposits and making loans. As such they are managed as banks and remain subject to domestic banking regulations and monetary authorities, as well as international guidelines set by the Bank for International Settlements as well as rating agencies, media coverage, and legislative oversight. However, because they are governmental entities, government banks also cut to classic concerns of political development and democratization. Democratization and political development imply social inclusion within political institutions. And rather than a permanent gain, questions just a generation ago subsumed under modernization and development theory appear to haunt social scientists and policy makers once again. The stark increase in inequality across many nations during the last decades implies a return to questions about social inclusion and exclusion. Scholars of political development (exemplified by the Social Science Research Council series on political development published in the 1960s and 1970s) described a moving equilibrium between social mobilization caused by economic development and the incorporation of citizens within political institutions that remained open and determined by political action. Today is different. Domestic political actors and policy communities currently struggle to maintain domestic income distribution amidst international capital flows and other forces that tend to exclude many citizens from wealth and political influence. This volume suggests that savings banks and microfinance policies are capable of steering domestic financial systems toward better income distribution, social inclusion,
Load more

Recommended publications
  • France À Fric: the CFA Zone in Africa and Neocolonialism
    France à fric: the CFA zone in Africa and neocolonialism Ian Taylor Date of deposit 18 04 2019 Document version Author’s accepted manuscript Access rights Copyright © Global South Ltd. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. Citation for Taylor, I. C. (2019). France à fric: the CFA Zone in Africa and published version neocolonialism. Third World Quarterly, Latest Articles. Link to published https://doi.org/10.1080/01436597.2019.1585183 version Full metadata for this item is available in St Andrews Research Repository at: https://research-repository.st-andrews.ac.uk/ FRANCE À FRIC: THE CFA ZONE IN AFRICA AND NEOCOLONIALISM Over fifty years after 1960’s “Year of Africa,” most of Francophone Africa continues to be embedded in a set of associations that fit very well with Kwame Nkrumah’s description of neocolonialism, where postcolonial states are de jure independent but in reality constrained through their economic systems so that policy is directed from outside. This article scrutinizes the functioning of the CFA, considering the role the currency has in persistent underdevelopment in most of Francophone Africa. In doing so, the article identifies the CFA as the most blatant example of functioning neocolonialism in Africa today and a critical device that promotes dependency in large parts of the continent. Mainstream analyses of the technical aspects of the CFA have generally focused on the exchange rate and other related matters. However, while important, the real importance of the CFA franc should not be seen as purely economic, but also political.
    [Show full text]
  • The History of Banks in France
    The history of banks in France Alain Plessis Some forms of progress long hindered In the Middle Ages and at the beginning of modern times, banking activities in France experienced a belated and more difficult development than in neighbouring countries such as Italy, the Netherlands or the United Provinces. The overwhelmingly precarious agriculture and a very limited participation on the international exchange scene, the dominant influence of the catholic church as well as the priests' sermons, long denouncing the practice of loaning at interest, and a very hostile mentality towards anything that resembled usury rendered all big merchants suspect and hindered the free development of their activities. Nevertheless the expansion of trade - which first began in the twelfth and thirteenth centuries through the activities of the fairs in Champagne and then through the dynamism of the commercial markets such as the large royal ports or the city of Lyons - as well as the financial needs of the royal government, all made the use of banking practices more and more indispensable. Banking methods, generally invented in Italy, arrived in France: manual exchange transactions and the use of bills of exchange for transferring funds, as well as the credit operations which developed in connection with those operations, deposits, credit transfers and various investment. The bankers in these professions, who sometimes grew quite rich, were primarily foreigners who lived cut off from the national community, especially Italians and Jews. These Italians were called Lombards; in Paris, already a banking city, the moneychangers from Piedmont set themselves up in a street which has since then been called rue des Lombards.
    [Show full text]
  • A Study in Comparative Economic History
    PRINCETON STUDIES IN INTERNATIONAL FINANCE NO. 36 The Formation of Financial Centers: A Study in Comparative Economic History Charles P. Kindlebergei INTERNATIONAL FINANCE SECTION DEPARTMENT OF ECONOMICS PRINCETON UNIVERSITY • 1974 PRINCETON STUDIES IN INTERNATIONAL FINANCE This is the thirty-sixth number in the series PRINCETON STUDIES IN INTERNATIONAL FINANCE, published from time to time by the Inter- national Finance Section of the Department of Economics at Princeton University. The author, Charles P. Kindleberger, is Ford Professor of Economics at the Massachusetts Institute of Technology. His work in economic history includes The World in Depression, 1929-1939 (1973) and Eco- nomic Growth in France and Britain, 1851-1950 (1964). He is the author of two Essays in International Finance, The Politics of Inter- national Money and World Language (No. 61, 1967) and Balance- of-Payments Deficits and the International Market for Liquidity (No. 46, 1965). This series is intended to be restricted to meritorious research stud- ies in the general field of international financial problems which are too technical, too specialized, or too long to qualify as ESSAYS. The Sec- tion welcomes the submission of manuscripts for this series. While the Section sponsors the studies, the writers are free to de- velop their topics as they will. Their ideas and treatment may.or may not be shared by the editorial committee of the Section or the mem- bers of the Department. PETER B. KENEN Director Princeton University PRINCETON STUDIES IN INTERNATIONAL FINANCE NO. 36 The Formation of Financial Centers: A Study in Comparative Economic History Charles P. Kindleberger INTERNATIONAL FINANCE SECTION DEPARTMENT OF ECONOMICS PRINCETON UNIVERSITY PRINCETON, NEW JERSEY November 1974 Copyright 0 1974, by International Finance Section Department of Economics, Princeton University Library of Congress Cataloging in Publication Data Kindleberger, Charles Poor, 1910- The formation of financial centers.
    [Show full text]
  • Annual Report and Accounts 2009
    HSBC France Annual Report and Accounts 2009 www.hsbc.fr The HSBC Group CCF joined the HSBC Group in July 2000 and changed its legal name to HSBC France on 1 November 2005. Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. Its international network comprises around 8,000 offices in 88 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 220,000 shareholders in 121 countries and territories. HSBC provides a comprehensive range of financial services and serves around 100 million customers through two customer groups: Personal Financial Services and Commercial Banking; and two global businesses: Global Banking and Markets, and Private Banking. In 2009, HSBC’s profit before tax was USD 7,079 million and USD 13.3 billion on an underlying basis and excluding goodwill impairment. Profit attributable to shareholders of the parent company was USD 5,834 million. Total assets were USD 2,364 billion at 31 December 2009. Geographical distribution of results – Profit before tax: Year ended 31 December 2009 USDm % Europe 4,009 56.7 Hong Kong 5,029 71.0 Rest of Asia-Pacific 4,200 59.3 Middle East 455 6.4 North America (7,738) (109.3) Latin America 1,124 15.9 Profit before tax 7,079 100.0 This Reference Document was registered with the Autorité des Marchés Financiers on 29 April 2010 in accordance with Article 212-13 of the AMF General Regulation.
    [Show full text]
  • REGISTRATION DOCUMENT and FULL-YEAR FINANCIAL REPORT Contents
    2014 REGISTRATION DOCUMENT AND FULL-YEAR FINANCIAL REPORT Contents FINANCIAL REPORT 213 5 5.1 IFRS Consolidated Financial Statements of Groupe BPCE as at December 31, 2014 214 PRESENTATION OF GROUPE BPCE 3 5.2 Statutory Auditors’ report on the consolidated fi nancial statements 318 1 1.1 Presentation of Groupe BPCE 4 5.3 IFRS Consolidated Financial Statements 1.2 History of the Group 5 of BPCE SA group as at December 31, 2014 320 1.3 Organization of Groupe BPCE 6 5.4 Statutory Auditors’ report on the consolidated 1.4 Key fi gures 2014 9 fi nancial statements 400 1.5 Contacts 11 5.5 BPCE parent company fi nancial statements 402 1.6 Calendar 11 5.6 Statutory Auditors’ report on the fi nancial statements 447 1.7 2014-2017 strategic plan: “Growing Differently” 12 1.8 Groupe BPCE’s Businesses 15 SOCIAL, ENVIRONMENTAL 6 AND SOCIETAL INFORMATION 449 CORPORATE GOVERNANCE 29 6.1 Sustainable development strategy and cooperative identity 450 2 2.1 Introduction 30 6.2 Response to economic challenges 456 2.2 Management and Supervisory Bodies 32 6.3 Human resources information 463 2.3 Role and operating rules of governing bodies 65 6.4 Response to environmental challenges 474 2.4 Rules and principles governing the determination of pay and benefi ts 72 6.5 Response to societal challenges 482 2.5 Potential confl icts of interest 84 6.6 CSR reporting methodology 491 2.6 Chairman’s report on internal control and risk 6.7 Report by one of the Statutory Auditors, management procedures for the year ended a designated independent third-party body, on the December
    [Show full text]
  • Débats Économiques Et Financiers N°37
    Débats économiques et financiers N°37 The Real Effects of Bank Runs. Evidence from the French Great Depression (1930-1931) Eric Monnet*, Angelo Riva† and Stefano Ungaro‡ *EHESS, Paris School of Economics and CEPR , [email protected] †European Business School Paris and Paris School of Economics, [email protected] ‡Autorité de Contrôle Prudentiel et de Résolution – Banque de France, [email protected] SECRÉTARIAT GENERAL DE L’AUTORITÉ DE CONTRÔLE PRUDENTIEL ET DE RÉSOLUTION DIRECTION D’ÉTUDE ET D’ANALYSE DES RISQUES LES EFFETS REELS DES RUEES BANCAIRES : L’EXEMPLE DE LA GRANDE DEPRESSION EN FRANCE (1930-1931)4 Eric Monnet, Angelo Riva et Stefano Ungaro Mai 2021 Les points de vue exprimés dans ces Débats Économiques et Financiers n’engagent que leurs auteurs et n’expriment pas nécessairement la position de l’Autorité de Contrôle Prudentiel et de Résolution. Ce document est disponible sur le site de l’Autorité de Contrôle Prudentiel et de Résolution : acpr.banque-france.fr The opinions expressed in the Economic and Financial Discussion Notes do not necessarily reflect views of the Autorité de Contrôle Prudentiel et de Résolution. This document is available on acpr.banque- france.fr 4This research has benefited from research funds granted by the Agence Nationale de la Recherche. Grant Number: ANR‐15‐CE26‐0008 & ANR-17-EURE-0001. We thank Sofiane Bouarif, Victor Degorce, Hadrien Clausse, Emilie Bonhoure, João Castello Branco for excellent research assistance, as well as Pierre-Cyrille Hautcoeur, Germán Forero Laverde, Thomas Breda, Patrice Baubeau, Kris Mitchener, Victor Degorce, Gary Gorton, Eugene White, Jean-Bernard Chatelain, Fabio Braggion, Francesco Manaresi, Guillaume Vuillemey, Paul Dutronc-Postel, and participants at the Financial History Workshop at Goethe University, Paris School of Economics, Sorbonne Alliance Finance Seminar, Institute of Economics of Sant'Anna School of Advanced Studies Seminar, and the Economic History Association 2020 Conference for helpful discussions.
    [Show full text]
  • M. Tucker Fabien Quétier
    Wolfgang Wende · Graham - M. Tucker Fabien Quétier · Matt Rayment Marianne Darbi Editors Biodiversity O sets European Perspectives on No Net Loss of Biodiversity and Ecosystem Services Biodiversity Offsets Wolfgang Wende • Graham - M. Tucker • Fabien Quétier • Matt Rayment • Marianne Darbi Editors Biodiversity Offsets European Perspectives on No Net Loss of Biodiversity and Ecosystem Services Editors Wolfgang Wende Graham - M. Tucker Leibniz Institute of Ecological Urban and Institute for European Environmental Policy Regional Development and TU Dresden London, UK Dresden, Germany Fabien Quétier Matt Rayment BIOTOPE Consultant Mèze, France London, UK Marianne Darbi Helmholtz Centre for Environmental Research Leipzig, Germany ISBN 978-3-319-72579-6 ISBN 978-3-319-72581-9 (eBook) https://doi.org/10.1007/978-3-319-72581-9 Library of Congress Control Number: 2018933588 © Springer International Publishing AG 2018 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication.
    [Show full text]
  • Crédit Agricole Sa
    - 2.7375.9 - DRI/05 Document de référence 2005 - Version anglaise. Shelf-registrationrapport d’activité document Crédit Agricole S.A. - 2005 Shelf-registration document 20 L’Etang des Fauries, Cris Naboulet 05 Cover: Crédit Agricole S.A. A French limited company with a share capital of € 4,491,966,903 Paris Trade and Company Registry N° 784 608 416 91-93, boulevard Pasteur - 75015 Paris Tél. 33 (0) 1.43.23.52.02 www.credit-agricole-sa.fr Contents Presentation 1 of Crédit agriCole s.a. p. 3 4 ManageMent rePort p. 59 Message from the Chairman Crédit Agricole S.A. Group financial review p. 60 and the Chief Executive Officer p. 4 Crédit Agricole S.A. Group results p. 61 2005 key figures p. 6 Recent trends and outlook p. 92 Stock market data p. 8 Analysis of Crédit Agricole S.A. parent company financial statements p. 96 Social and Environmental Information on the Crédit Agricole S.A. Group p. 101 CorPorate governanCe 2 and internal Control p. 13 Chairman’s report on corporate governance and internal control presented 5 finanCial inforMation p. 115 to the annual general meeting of shareholders on 17 May 2006 p. 14 Consolidated financial statements approved by the Board of Directors Statutory auditors report p. 29 on 7 March 2006 p. 116 Executive officers’ and directors’ Consolidated financial statements compensation p. 30 at 31 December 2005 prepared Executive Committee p. 41 in accordance with IFRS and comparative data on the same basis p. 214 Information on the parent company financial statements p. 238 Crédit agriCole s.a.
    [Show full text]
  • Poujade and Poujadolf: Fears of Fascism in France's Fourth Republic
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by CU Scholar Institutional Repository University of Colorado, Boulder CU Scholar Undergraduate Honors Theses Honors Program Spring 2015 Poujade and Poujadolf: Fears of Fascism in France’s Fourth Republic Wojciech J. Owczarek [email protected] Follow this and additional works at: http://scholar.colorado.edu/honr_theses Part of the European History Commons, and the Political History Commons Recommended Citation Owczarek, Wojciech J., "Poujade and Poujadolf: Fears of Fascism in France’s Fourth Republic" (2015). Undergraduate Honors Theses. Paper 820. This Thesis is brought to you for free and open access by Honors Program at CU Scholar. It has been accepted for inclusion in Undergraduate Honors Theses by an authorized administrator of CU Scholar. For more information, please contact [email protected]. POUJADE AND POUJADOLF: Fears of Fascism in France’s Fourth Republic Wojciech J. Owczarek History Departmental Honors Thesis University of Colorado, Boulder April 7, 2015 Advisor: Martha Hanna | History Defense Committee: Abby Hickcox | Honors Fred Anderson | History ABSTRACT The Poujadist Movement, which began as a protest of shopkeepers in southern France in 1953 and rose to national prominence in the elections of January, 1956, was, at the time of its political activity, accused by its critics of fascism. While analyses of the Poujadists have generally focused on the movement’s ideological characteristics to evaluate its possible fascism or its classification as a member of the French far right, I look at Pierre Poujade and the label of fascism in the context of the postwar political climate and the politicized memory of the French Resistance.
    [Show full text]
  • Crossroads of Enlightenment 1685-1850: Exploring Education, Science, and Industry Across the Delessert Network
    CROSSROADS OF ENLIGHTENMENT 1685-1850: EXPLORING EDUCATION, SCIENCE, AND INDUSTRY ACROSS THE DELESSERT NETWORK A Dissertation Submitted to the College of Graduate Studies and Research in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in the Department of History University of Saskatchewan Saskatoon By J. Marc MacDonald © Copyright J. Marc MacDonald, March 2015. All rights reserved PERMISSION TO USE I agree, in presenting this dissertation in partial fulfillment of the requirements for a Postgraduate degree from the University of Saskatchewan, that this University’s Libraries may make the dissertation freely available for consultation. Furthermore, I agree that permission for copying material from this dissertation in any form, in part or in its entirety, for scholarly purposes may be granted by the professors who supervised my dissertation work or, in their absence, by the Head of the History Department or the Dean of the College of Arts, in which I completed this dissertation. It is understood that any copying or publication or use of this dissertation or parts thereof for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the University of Saskatchewan in any scholarly use that may be made of any material in my dissertation. Request for permission to copy or to make other uses of materials in this dissertation in whole or part should be addressed to: Head of the Department of History University of Saskatchewan 9 Campus Drive, Room 522 Arts Building Saskatoon, SK S7N 5N5 Canada OR Dean College of Graduate Studies and Research University of Saskatchewan, Room C180 105 Administration Place Saskatoon, SK S7N 5A2 Canada i ABSTRACT The Enlightenment did not end with the French Revolution but extended into the nineteenth century, effecting a transformation to modernity.
    [Show full text]
  • Islamic Finance in France: Current State, Challenges and Opportunities
    Islamic Finance in France: Current State, Challenges and Opportunities Rihab GRASSA1 M. Kabir HASSAN2 Abstract In spite of its small share of the global financial market, Islamic finance is considered as one of this sector’s fastest growing components over the last few decades and has gained further momentum in the wake of the global financial crisis. Given the France’s position as one of the leading international financial markets, it is surprising that part of this growth has not taken place in La Place de Paris. France, the western European country with the largest Muslim population, has not make much progress in developing Islamic finance in the domestic market like her neighbors UK. The paper examines the development of and possible prospects for Islamic finance in France. As well as, this study discuss the breakthroughs, issues and challenges facing this sector in France. Keywords: Islamic finance, Muslims, France, capital market Introduction Over the past decades the Islamic finance has grown internationally steadily and rapidly, drawing attention from multinational banks and moving into European markets. Indeed, Islamic finance has gained a good place in the biggest financial markets in Europe, despite the regulatory obstacles presented by operating in a non-Muslim financial market. Although the overall size of Islamic finance is still limited and the share of Europe as a region in global Islamic finance assets remains marginal, Islamic banking and Shariah- compliant funds sectors have made significant progress in Europe (Bank Negara Malaysia, 2015). By 2014, the regional Islamic banking assets accounted for 0.5% of the global Islamic total assets and Islamic funds domiciled in Europe accounting for 20% of the Shariah-compliant assets under management worldwide (KFH report, 2014).
    [Show full text]
  • Assessment of Risks to the French Financial System December 2016
    ASSESSMENT of R ISKS to the F RENCH FINANCIAL SYSTEM December 2016 Contents PREFACE This assessment of risks and vulnerabilities in the French financial system brings together analyses prepared by staff from the Banque de France and the Autorité de contrôle prudentiel et de résolution (ACPR). The exercise is steered and coordinated by the Banque de France’s Financial Stability Directorate, with an assessment published twice annually, in June and December. This is done as part of the financial stability assignment entrusted to the Banque de France by Act 2013/672 of 26 July 2013 on the separation and regulation of banking activities, and is coordinated with France’s Haut Conseil de stabilité financière (High Council for Financial Stability – HCSF). The following report seeks to identify the risks and vulnerabilities present in the French financial system along with the system’s strengths and sources of resilience. This analysis is used in particular to inform the deliberations of the Banque de France’s governing authorities, the college of the ACPR and the HCSF. It seeks to provide support for proposals on macroprudential policy made by the governor of the Banque de France to the HCSF and, where applicable, to assess the impact of these prudential proposals or measures on financial stability. François Villeroy de Galhau Governor of the Banque de France 2 Sent to press on 9 December 2016 CONTENTS 1. SUMMARY: ASSESSMENT OF RISKS AND VULNERABILITIES IN THE FRENCH FINANCIAL SYSTEM 4 2. MACROECONOMIC RISK 9 2.1 Mounting policy uncertainty 10 a. Macroeconomic consequences of the US presidential election 10 b.
    [Show full text]