The bank for a chaging world

From the Third Republic to World War I

1913 - 1920 Banque Nationale de Crédit

prospectus_bnc.jpg
A prospectus for
subscription to BNC shares
when it was founded in
1913.

Creation and expansion

The Banque Nationale de Crédit (BNC) was created on June 25, 1913 to take over the operations of the Comptoir d'Escompte de Mulhouse's (CEM) French network. With its central offices at 20 rue Le Peletier in Paris, it had an initial share capital of 100 million francs and actively carried on its predecessor's expansion policy.

From the outset, the bank applied a policy of active geographic expansion in the hope of reaching all of France. In addition to the branches contributed by CEM, it set up operations in the greater Paris area, along the Rhône river, in the Mediterranean basin and in southwestern France. BNC also immediately began an ambitious external growth program, and between 1913 and 1920 took over about thirty local and regional banks, including Banque du Midi, Crédit du Centre, Crédit du Sud-Ouest, Banque de Nancy and Banque de Metz. Starting with the original 113 CEM branches, it expanded its network to 276 branches in 1920, then to 442 in 1922 (including 188 local affiliates). In 1917, BNC transferred its head offices to 16 Boulevard des Italiens in Paris.

BNC was in possession of extensive human resources. Under Chairman Eugène Raval, Managing Director Emile Level gradually set up a complete corporate management structure. A new structure of teams and control methods was put into practice along with the creation of management posts in Paris, the induction of local affiliates, of a centralised administration and claims service, plus the positions of controller general and secretary general.

The fact that BNC's personnel were dynamic and motivated enabled the bank to gain market shares as it applied a flexible discounting policy along with lower interest rates. This discounting generated half of BNC's business, and the bank also supported the war effort by helping to finance public spending.

After the war, the placement of treasury bonds combined with the recovering economy gave BNC the opportunity to provide short-term loans. BNC benefited from the experience of the management staff at the banks it had acquired, which were very solidly established in their own communities. With the growing number of deposits and continuing development of business, BNC was able to increase its capital several times. The capital reached 500 million francs in 1920.

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