Newspaper article from our research archive:

High Street banks in France to pay interest on deposits.

Byline: Ben Wright

Apr. 17--French retail banks, led by the mutual savings bank Caisse Centrale des Caisses d'Epargne, will start paying interest on current accounts for the first time within the next few weeks.

The move is expected to increase competition in the sector and to dent the pre-tax profits of a number of firms, Credit Agricole and Societe Generale in particular.

The development is a huge departure for French retail banking and could shift the dynamics of the industry. Until recently, French law had prohibited banks from paying interest on deposits. But the European Courts of Justice struck down this law last October.

Jacques-Henri Gaulard, an ...

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