Banque De France
The Banque De France
is France’s central bank
and is linked financially to the European Central Bank
. The headquarters of the Banque De France are located conveniently in Paris, the capital of France. The Banque De France has the same job as the Bank of England
. It implements and controls the interest rate policy throughout the country.
The Banque De France was actually first initiated and created by Napoleon Bonaparte on the 18th of January in 1800. Bonaparte wanted to grow the economy and restore it in the aftermath of the recession that occurred in the Revolutionary period. At this time, both Sweden and England already had their issuing banks.
Bonaparte was actually one of the banks shareholders and he was because he was an original founder. According to history, Bonaparte also made members of his family part of the bank by making them shareholders. He also gave the privilege of being a shareholder to ‘celebrities’ of that time.
The Banque De France was funded with some state funds. However, the majority of the funding for the bank came from private capital. The bank has always been in close contact with the state from the very beginning of its existence.
The French Government went on to claim a part of the control over the bank by appointing a governor of their choosing and two further deputy governors. The shareholders were still represented and were so by 15 regents.
When the bank was first created, it was able to issue bank notes to people in Paris for 15 years. Later, the notes were issued to further afield in France and rolled out to the rest of the country in 1848. The Banque De France was not actually nationalized until the year of 1946.
The bank was then privatized in 1993 and was done so to prepare for the change from Francs to Euros. Euros were made the currency
of France in 1999.
To this day, the Banque De France is responsible for formulating credit and monetary policies
. The Banque of France is also responsible for making sure that the banking system is run orderly and functions smoothly. As the Banque De France sets the interest rates for other banks to adhere to; loans, finance and mortgages are all controlled by the decisions made by the Banque De France.
If someone has a bank account in France, there are a few things that should be noted. If a check is ever issued without the funds available, the Banque De France can actually impose a ban on the issuer. This ban, called Interdit Bancaire, will stop that person issuing any other checks, whether good or not, for at least 5 years.
The Banque De France has a colorful and a varied history. From its very beginnings to the present day, it remains an institute of great influence and power.
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