Local governments

  • Local governments

SFIL, a new wholly publicly-owned bank to:

  • provide a sustainable solution to the reduction in long-term financing offered to local governments and public hospitals
  • secure access to long-term financing for the sector
  • develop, for the French market, a simple, transparent and accessible commercial offering at the market price
  • provide an active sensitivity reduction policy for “sensitive” loans
1983 2007

DECENTRALIZATION PROCESS
Financial autonomy of the local governments which now finance themselves independently of the French government

DEVELOPMENT OF A LOAN BUSINESS

undertaken by the commercial banks

2008 2010

DEXIA CRÉDIT LOCAL EXITS THE MARKET

Historical financer of the local public sector, with a market share of 40%,

 

The commercial banks take over this market share to only a small extent, due to:
– the impact of Basel III
– the increase in the cost of liquidity
– the absence of side business

2011 2012

THE BANKS’ INSUFFICIENT OFFERING

BOND FINANCING VERY LIMITED

– CDC fills this gap
EUR 5 billion in emergency aid provided per year

-Discussions between the French government and the European Commission with a view to creating a new public bank in charge of this activity

 

2013

CREATION OF SFIL

– 75% owned by the French government, 20% by Caisse des Dépôts and 5% by LBP

– SFIL takes over the balance sheet of DEXMA, renamed CAFFIL

– Scheme fully operational and creation of the financing program by CAFFIL