The bank for a chaging world

From the Third Republic to World War I

1872 - 1920 Banque de Paris et des Pays-Bas

Rue_d_Antin1910.jpg
Banque de Paris et des Pays-Bas,
rue d'Antin, 1910.

A major French investment bank

During this period, the Banque de Paris (as it continued to be called) pursued two core activities: the issue of securities on the French market, particularly treasury bonds and securities issued by foreign governments, and the financing of corporations, which led the bank to progressively enter the field of industrial investment.

Between 1872 and 1914, Banque de Paris et des Pays-Bas enjoyed a period of prosperity, especially between 1895 and 1909 under Chairman Eugène Goüin, one of its founders. The bank alternatively played the role of lead manager or member of the banking syndicates that underwrote loans to a long list of governments and public entities, including Russia, the Balkan states, the Ottoman Empire, Morocco, Latin America, etc.

At the same time it amassed a substantial equity portfolio, providing a source of capital gain, as well as long-term investments in certain key industries. These industries were not only in France but also in other countries (such as Norsk Hydro in Norway), as well as in public utilities such as railroads, public transport systems and electricity companies.

In 1913 Europe accounted for over half of the equity portfolio, including stakes in a large number of banks (Banco Español de Credito, Banca Commerciale Italiana and Banque Russo-Asiatique, the leading Russian bank at the time) plus other establishments in Central Europe.

Outside Europe, from the late 19th century to the early 20th century, the bank played a role in launching financial establishments in North America (Crédit Foncier Franco-Canadien, Banco Nacional de Mexico) South America (Banque Française et Italienne pour l'Amérique du Sud-Sudaméris), Asia (Banque Franco-Japonaise) and Africa (Banque d'Etat du Maroc).

In addition, it engendered close relationships with major players in international finance (Baring, Deutsche Bank, Wiener Bankverein and Kuhn Loeb), which allowed it to gain influence overseas without developing its own banking network.

During World War One the bank played an active role in the war effort through issuing national defense bonds and through financing the development of the war industry.

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