The National Confederation of Crdit Mutuel (CNCM), the bank’s central body, and Crdit Mutuel Arka, which brings together the federations of Brittany and the South-West, announced on Wednesday the signing of a memorandum of understanding. It puts an end to 15 years of internal conflict between the Federal Alliance, based in Strasbourg, and Arka, based in Brest. What was acted in this consensus text.
THE protocol of agreement vote unanimity May 2 by the Board of Directors of the CNCM aims to preserve the cohesion of Crdit Mutuel while guaranteeing the autonomy of its 19 federations, including those of Arka, underline the two parties in a joint statement.
The 4 principles acted in this agreement
This protocol boasting the return of a united and plural Crdit Mutuel is based on 4 main principles:
- Principles of subsidiarity and autonomyincluding on strategic aspects, for the various regional groups that make up the Crdit Mutuel group.
- THE free competitive development of the respective subsidiaries, while respecting the principle of territoriality of the Crdit Mutuel funds. On this point, a guide to good commercial practices has been adopted, the press release specifies, the content of this guide for internal use remaining confidential, however, specifies the CNCM MoneyVox. As a reminder, Crdit Mutuel Arka has its own insurance subsidiary, Suravenir, and its online bank, Fortuneo, entities that are completely separate from the Assurances du Crdit Mutuel (ACM) or Monbanq subsidiary, which are integrated into the group. Federal Alliance, based in Strasbourg.
- On use of the Crdit Mutuel brand, the national brand and the blue and red logo used in most of France, has historically been registered by the Confederation, which is responsible for it and owns it on behalf of the members of Crdit Mutuel. Autonomous use of distinct brands, incorporating the terms Crdit Mutuel, is however possible by the federations and the mutuals from their own name. Clearly, Crdit Mutuel de Bretagne and Crdit Mutuel du Sud-Ouest can keep their logo, which is distinguished by gray letters, and a red shape resembling a triskel on a white background (see illustration photo above).
- About the governance of the National Confederation of Crédit Mutuel, there are plans for the creation of a delegated vice-presidency, a post which will fall by right to the president of the federation of Crdit Mutuel de Bretagne, and the creation of a right of veto for the various federations in the event of their vital interests (employment , regional decision-making centres, subsidiaries, information system, purpose, etc.). The CNCM remains the central body guaranteeing the financial stability of the group, and remains the privileged interlocutor of the supervisory authorities (ACPR, ECB, etc.).
The remaining steps before finally burying the hatchet
This agreement in principle must now be translated in the coming weeks in a draft revision of the statutes of the central body submitted to an extraordinary general meeting and the approval of the Minister for the Economy. The local banks meeting in general assembly of the Crdit Mutuel de Bretagne and Crdit Mutuel du Sud-Ouest federations will finally have to validate these draft statutes in order to put an end to the disaffiliation project.
The Banque de France also reacted to the announcement of this agreement, putting an end to this internal struggle at Crdit Mutuel: This is a very positive development, which has our full support, declared Denis Beau, Senior Deputy Governor of the Banque de France, in a press release. It is a decisive step in the restoration of peaceful governance for this mutualist group.
The last episodes of this internal struggle
Internal tensions had turned into a legal conflict in 2014, opposing Crdit Mutuel Arka, whose headquarters are Le Relecq-Kerhuon near Brest, and the CNCM, the central body that oversees all the federations of the group.
Fears about a possible split from the group culminated in 2018 when the Breton branch declared that it wanted to gain independence through its then president, Jean-Pierre Denis. This was followed by a demonstration in front of Bercy of thousands of employees dressed in red and marching to the cries of Vive Arka. The sometimes latent, sometimes open conflict has resulted in numerous trials and a multitude of acrimonious exchanges between the two entities.
Discussions between the two parties had resumed in the summer of 2022, the CNCM then taking a step towards Arka, instructing its president Nicolas Thry, to put an end to a conflict which is neither in the interests of the members nor up to the current and future economic situation.
The Mutual Credit War. Read or re-read our file on this banking and judicial soap opera: 102 articles published on this subject between March 2011 and May 2023.