BNP Paribas

BNP Paribas, powerful growth potential and value creation. With its EUR 20 billion in reserves, and its large international presence, the new Group has the means to achieve its ambitions: to become a European leader in each of its markets by seizing the opportunities linked to the euro and to be a major player on the global scale, while continuing to improve shareholder value. Key Dates: 1920s:Banque Nationale de Crédit merges with Banque Fran&ccedilse pour le Commerce et l'Industrie. Banque Nationale launches hostile takeover of both Société Générale and Paribas , wins control of Paribas . BNP Paribas Group is the fruit of the 1999 merger between two of France's most influential banking groups, the retail-oriented Banque Nationale de Paris and Banque Paribas , traditionally focused on the institutional sector. The newly merged group is France's largest bank and among the top five European banks (and number two among euro-based banks). Apart from its retail and institutional banking services and operations in France, BNP Paribas also trades internationally in more than 85 countries, including in the United States through its control of BancWest. The banking group is also active on the Internet, through its retail brands Banque Directe, Cortal, and BNP Net, and its corporate brands BNP Net Entreprises, Issue Master, and Bond Click. Led by Chairman Michel Pebereau and President Baudouin Prot, BNP narrowly lost a bitter battle to take over rival French retail bank Société Générale at the same time as gaining control of Paribas, which would have created the world's largest bank and the first to achieve assets over US$1 trillion. Despite the backing of the French government, the takeover plan failed--for the time being, at least. Given the widespread chauvinism of the European banking community, eager to maintain national control over their leading banks, a future merger between the two French banking giants could not be ruled out as a possibility. Banque Nationale de Paris (BNP) was formed in 1966 by a merger between two long-established French banks, the Comptoir National d'Escompte de Paris (CNEP) and the Banque Nationale Pour le Commerce et l'Industrie (BNCI). In the 1980s, it was one of the largest financial institutions in France. The Comptoir d'Escompte was founded in 1848, primarily to rescue Paris businesses from difficulties in obtaining financing. In 1854, after the crisis had passed and the bank no longer had a special mission, it became a commercial institution, greatly increasing its capital and range of activities. Although it continued to concentrate on commerce in Paris instead of expanding by forming local branches, the Comptoir d'Escompte did establish itself in French colonies and foreign countries, becoming seriously involved in copper speculation. The bank was very active in the wool trade, and for many years was the only foreign bank in Australia. It was also one of the leading banks in India, and had a significant business presence in London and Brussels. Unfortunately, the bank soon spread itself too thin and, by the late 1880s, its liabilities were of such gigantic proportions that the president, Denfert Rochereau, chose to commit suicide. The Bank of France and others in the banking community came to Comptoir d'Escompte's aid, meeting its liabilities and repaying its loans. Out of these ruins, a new deposit bank called Comptoir National d'Escompte de Paris arose in 1889. Only a short time passed before the bank had recovered its health. Although it kept its interests abroad, its growth now focused on the French provinces. By 1920, it had opened 223 branches, and had twice that many by the end of the decade. During the Depression, expansion slowed, and things improved little during World War II. In 1946, along with the Bank of France and three other major deposit banks (including BNCI, with which it would later merge), CNEP was nationalized as part of the government's postwar recovery plan. This plan