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High Street banks in France to pay interest on deposits.
- Article from:
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Sunday Business (London)
- Article date:
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April 17, 2005
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Copyright informationCOPYRIGHT 2005 Sunday Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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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