The booklet A is more what it was of course

The booklet A is more what it was, of course. Under the effect of competition stiff passbooks regulated, more flexible to use and more responsive to changes in rates, it has lost some of its luster (read below). But this old tax shelter savings product close to two centuries is a genuine institution in France. More than 40 million French today have A booklet that they collectively placed 4 of their savings, or a total outstanding of EUR 112 billion at end of April. And its role in financing of social housing is unavoidable. Over two-thirds of its collection are used each year to finance the investments of the housing agencies.

However the French Government has until the end of the week to meet in Brussels in the proceedings initiated by the Commission early in June. In the centre of this initiative, the "special rights" enjoyed the Banque Postale and Caisses d'Epargne, only allowed for the time to market this tax shelter savings product.

The iron arm is old, the other banks holding long that the booklet is a great product appeal, i.e. a tool of conquest, for the two networks of distributors. But it is hardened with the creation, at the beginning of the year, a new credit facility where the post housed its financial services. A front-end competitor for Credit Agricole, which redoubles since efforts to abolish what it sees as an unjustified privilege.

Unfair advantage

As early as December 7, the Green Bank deposits with the Banques Populaires, BNP Paribas and Société Générale, a complaint to Brussels to denounce the unfair advantage which would benefit each year the future Banque Postale in respect of the distribution of the booklet a. early March, the same institutions, joined by ING, put a second iron in the fire: they brought an action before the administrative tribunal of Paris. Caisses d'Epargne and Banque Postale, we cash the shock. It recalls the counterparties of the advantage in terms of missions of general interest. In particular to the position, which handles many "small booklets" used by disadvantaged clients as real wallet (read below).

It also digests the reduction of the level of Commission granted by public authorities to the title of the collection. While competing establishments offer merely to a 0.8 commission, that of the squirrel is reduced from 1.2 to 1 within a year, that of La Banque Postale returning from 1.5 to 1.3. Dry losses for the two institutions, whose revenues come from this activity at height of 8.7 to 16.5 respectively...

Uncertain impacts

The impact of a trivialization, i.e. of a generalization of the distribution to all banking networks, is therefore not neutral for the two institutions today responsible for the collection. Especially for La Banque Postale, which would probably capture the opportunity to claim the State the right to distribute credits for consumption, that it is currently not allowed to market. This impact may, to some extent, be anticipated.

The impact of such a decision on the construction of social housing in France are, like, more uncertain. Because two-thirds from collection of the booklet A linchpin of the system of financing of social housing. "In attendance, is it step to attend a reorientation of the funds collected to other financial products, which would dry up the sources of financing of the mission of general interest recognised by Community law", asks an observer.

Bercy has long-standing macroeconomic studies provide a funds for commonality. Banking networks have shown, by massively redirecting clients holders of old ELP to life insurance contracts after tax changes adopted by the Government of late December, with what speed they are capable of "siphon" certain products.

A risk regarding, in this case, the more affluent customers, without which the system could topple.