An early form of European champions? Banking clubs between European integration and global banking (1960s–1990s)

Abstract

Between the late 1950s and the mid-1970s, most large European commercial banks created European banking clubs, which were hybrid cooperative organisations meant to respond to American competition and to the progress of European integration. Based on the archives of several commercial banks from France and the UK, this article examines how the three main European clubs (EBIC, Europartners, and ABECOR) emerged and developed in the 1960s and 1970s, and continued to exist despite increasing challenges in the 1980s. The article argues that banking clubs were an early attempt at creating truly ‘European’ banks, or European champions, even though their experience was abandoned. They also participated in European integration in a different way than the one the European Commission promoted. These clubs were an important institutional response of European banks to both globalisation and European integration.

Keywords:

• European integration
• banking clubs
• European champions
• European enterprises
• consortium banks
• commercial banks
• cartels
• competition law
• cooperation
• globalisation
• common banking market
• British banks
• French banks
• European banking

Acknowledgement

My thanks go to Emmanuel Mourlon-Druol, Duncan Ross, and two anonymous reviewers for their constructive comments.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes on contributor

Alexis Drach is lecturer in economic history at Paris 8 Vincennes-Saint Denis University. He holds a PhD in history from the European University Institute and has been Research Associate in international economic history at Glasgow University. His interests lie in the history of banking regulation and supervision, banks’ internationalisation, European integration, globalisation, and financial deregulation.

Notes

1 See Table 1 for a list of member banks of these clubs.

2 On the common market in banking, see: Farges-Cazenove (2017) and Drach (2020a).

3 On the predominance of political approaches of European integration history, see for instance: Kaiser and Varsori (2010) and Rollings and Warlouzet (2020). On the strong competition in international banking in the 1970s, see for instance: Battilossi (2010), Altamura (2017), and Drach (2020b).

4 For the few works on the role of bankers in European integration, see for instance: Wilson (2006) and Ferguson (2010). For studies focussing more on the industrial sector, see for instance: Cowles (1995), Jones and Miskell (2005), Rollings (2007), and Ramirez Perez (2016).

5 On the idea that these clubs disappeared in the 1980s, see for instance: Ross (1998), Cassis (2005), Altamura (2017, pp. 209–210).

6 Société Générale Archives (SGA), box 81473, ‘EBIC philosophy and EBIC organization’, J.R.M. van den Brink, February 1977.

7 SGA, box 81158, note to Marc Viénot on banking clubs, M. Teich, 4 January 1977. See also: Gall et al. (1995).

8 For instance on the 20 June 1974 meeting of the ABECOR steering committee, where Lord Seebohm from Barclays suggested that their club should act as a pressure group, which was agreed. Barclays Archives (BA), 0080-6148, ‘Minutes of the meeting of the steering committee held that the offices of the Banque Nationale de Paris in Paris, on 20^th June, 1974’.

9 BA, 0080-6148, ‘Memorandum’, document signed by the seven ABECOR banks on 20 June 1974, p. 1.

10 SGA, box 81466, ‘Guidelines EBIC’, October 1970.

11 HSBC Archives (HSBCA), UK 1617-0168, ‘Midland Bank as a Member of EBIC – A Review’, undated but probably 1980.

12 SGA, box 81468, Minutes of the EAC/EBIC meeting of 12 June 1972.

13 SGA, box 81469, report of M. Teich on the working group ‘Management Committee’ meeting in Brussels on 27 April 1973.

14 BA, 0080-6148, ‘New Abecor Is Largest European Consortium Bank’, New York Journal of Commerce, 4 June 1974.

15 SGA, box 81466, ‘Engagement de la Société Générale’, Jacques Ferronnière; SGA, box 81473, ‘EBIC philosophy and EBIC organization’, J.R.M. van den Brink, February 1977.

16 Centre Virtuel de Connaissance sur l’Europe (CVCE), ‘Hermann J. Abs, Economic cooperation in Europe today (1955)’, http://www.cvce.eu/obj/hermann_j_abs_la_cooperation_economique_dans_l_europ (accessed 2 October 2020).

17 Historical Archives of the European Union (HAEU), INT491, Interview of J. R. M. Van Den Brink, 17 May 1989 (https://archives.eui.eu/en/oral_history/INT491).

18 BA, 0080-6148, ‘Constituée avec la participation de la B.N.P. ABECOR est la dernière en date des associations bancaires européennes’, Agefi journal, 7 June 1974.

19 BA, 0080-5857, ‘Summary record of top level meeting – Brussels, February 8^th, 1974, held in the head office of the Banque de Bruxelles, Rue de la Régence 2, 1000 Bruxelles’, 13 February 1974.

20 Crédit Agricole-Crédit Lyonnais Archives (CACLA), 387 AH 65-68, ‘Rappel des activités de la coopérations depuis 1971’, June 1988.

21 HSBC France Archives (HSBCFA), Crédit Commercial de France documents (CCF documents), Inter-Alpha 1976 annual report. See also: Roberts and Arnander (2001, pp. 303–304).

22 BA, 0080-5857, ‘Summary record of top level meeting – Brussels, February 8^th, 1974, held in the head office of the Banque de Bruxelles, Rue de la Régence 2, 1000 Bruxelles’, 13 February 1974, p. 2.

23 BA, 0080-6148, ‘Extract from the Board minutes 14^th March, 1974’.

24 SGA, 81473, ‘EBIC philosophy and EBIC organization’, J.R.M. Van den Brink, February 1977.

25 Ibid., p. 5.

26 Ibid. See also Roberts and Arnander (2001, p. 27).

27 Bank of France Archives (BFA), 1357200901/97, ‘Compte rendu de la réunion d’information avec la Fédération bancaire de la C.E.E. (Bruxelles, 5 mars 1970)’.

28 SGA, 81466, ‘La situation des groupements bancaires internationaux au regard des articles 85 et suivants du Traité de Rome’, note from Campet to Lauré, 28 April 1971; SGA, 81466, letter from Willy Schlieder, head of the Directorate General for Competition of the European Commission, to the Société Générale de Banque, 19 July 1972. On the history of EEC competition policies, see: Rollings and Warlouzet (2020).

29 SGA, 81468, ‘Conversation avec Smolarski du Crédit Lyonnais’, 29 August 1972.

30 SGA, 81468, internal note from the Société Générale’s EAC/EBIC service at the foreign department (Direction de l’Étranger, service EAC-EBIC), 12 September 1972.

31 SGA, 81468, ‘Notes sur les problèmes de l’EBIC avec la Commission de Bruxelles’, M. Campet, 28 November 1972.

32 SGA, 81467, folder ‘Notification’, 29 July 1976.

33 SGA, 81473, letter from the DG IV (competition) of the European Commission to Paul Verhagen, general manager of EBIC, 11 May 1977.

34 HSBCA, UK 1617-0168, ‘Midland Bank as a Member of EBIC – A Review’, undated but probably 1980.

35 SGA, 81468, Minutes of the EAC/EBIC meeting of 14 December 1972.

36 SGA, 81467, ‘Implantation EBIC dans le Sud-Est asiatique particulièrement à Singapour’, L. Buttay, 2 December 1971.

37 SGA, 81466 I., report of a meeting with the Société Générale de Banque (Belgium), 7 April 1971.

38 SGA, 81158, ‘Étude de l’EBIC réalisée par la Société Générale’, 1976.

39 CACLA, 387 AH 65-68, ‘Rappel des activités de la coopération depuis 1971’, June 1988.

40 The three investment banks were: Europartners Securities Corporation (New York, 1971), Nippon European Bank (Bruxelles, 1976), and Mithaï Europarners Bank Finance (Bangkok, 1972). The four commercial banks were: Europarners Bank Nederland (Amsterdam, 1973), ICB (1973), Commerz und Credit Bank (Sarrebruck, only with Crédit Lyonnais and Commerzbank, 1974), Misr International Bank (Cairo, 1976).

41 BA, 0080-6148, ‘Minutes of the Meeting of the Steering Committee Held in the Offices of the Banque Nationale de Paris in Paris, on February 7^th, 1975’, p. 4.

42 BA, 0080-5857, ABECOR Report 1977.

43 BA, 0080-6294, ‘Minutes of the Meeting of the Steering Committee Held in the Offices of the Banque Nationale de Paris in Paris on Friday 15 December 1978’.

44 Ibid.

45 On the involvement of European banks in the recycling of petrodollars, see: Altamura (2017).

46 BA, 0080-6294, ‘Note to Mr. Bevan. Mr. Haeusgen: Paper on new risks in international financings’, 15 September 1978.

47 BA, 0080-6186, ‘Note to MR. T. H. Bevan. Advantages of association within the ABECOR group’, 7 December 1976, p. 1.

48 CACLA, 387 AH 65-68, ‘Rappel des activités de la coopérations depuis 1971’, June 1988.

49 BA, 0390-454, ABECOR Report 1981.

50 BNP-Paribas Archives (BNPPA), internal journal Dialogue, 1981, p. 13.

51 BNPPA, internal journal Dialogue, March 1976, p. 6.

52 BNPPA, internal journal Dialogue, 1981, p. 13.

53 BA, 0080-6148, journal Vision December 1973, ‘Clubs, consortia and other complexities’, pp. 95–97.

54 CACLA, 387 AH 65-68, ‘Rappel des activités de la coopérations depuis 1971’, June 1988.

55 BFA, journal Banque, December 1992, ‘Les groupements européens de banques. L’exemple des Europartners’, Hansjörg Braun and Andreas de Maizière, head of Commerzbank A.G. Paris, pp. 1119–1120.

56 The Society for Worldwide International Financial Telecommunication (SWIFT), was a company created in 1973 in Belgium to develop and manage a network of international financial communications. Banks used it to exchange messages and proceed to international settlements. BFA, 2150200701/38, ‘Groupement des utilisateurs de SWIFT en France’, undated but sent with a letter to the Bank of France dated 13 July 1988.

57 CACLA, 387 AH 65-68, ‘Rappel des activités de la coopération depuis 1971’, June 1988.

58 SGA, 81480, ‘Board of EBIC 60th Regular Meeting, Brussels, 4^th December 1985’.

59 SGA, 81473, ‘Dossier ASEAN I’, programme for the conference organised on 4–6 April 1977 in Brussels.

60 SGA, 81475, Minutes of the EAC/EBIC Meeting of 16 March 1979.

61 BA, 0080-6148, ‘Minutes of the meeting of the steering committee held in the offices of the Banque Nationale de Paris in Paris, on February 7^th, 1975’; BA, 0390-0454, ABECOR annual report 1981.

62 SGA, 81480, ‘Compte rendu de la 83ème réunion du Management Committee de l’EBIC à Francfort le 2 Septembre 1985’, M.B. Lorain, 3 September 1985; SGA, 81484, ‘Restatement of Direction for EBIC’, November 1987.

63 For the case of Europartners for example: CACLA, 387 AH 65-68, ‘Rappel des activités de la coopérations depuis 1971’, June 1988.

64 SGA, 81480, ‘Board of EBIC, 57^th regular meeting, Amsterdam, 12^th December 1984’.

65 SGA, 81480, ‘Cession éventuelle de l’EBC Group à la First Interstate Bancorp’, B. Lorain, 9 May 1984.

66 HSBCA, UK 1617-0305, ‘Minutes of a meeting of EAB shareholders directors, Paris 12^th June 1986’.

67 BNPPA, internal journal Dialogue, April 1985, pp. 34–35.

68 SGA, 81480, ‘The Future Development of EBIC’, 14 December 1983.

69 SGA, 81480, ‘Working Groups’ Activities 1985’.

70 SGA, 81484, ‘EBIC News. Special Issue: Review of EBIC Activities 1989’.

71 CACLA, 387 AH 65-68, ‘Rappel des activités de la coopérations depuis 1971’, June 1988.

72 Ibid.

73 For a general approach to business interest groups, see: Schmitter and Streeck (1999); On business interest groups in the banking sector and the EEC, see: Sargent (1982), Josselin (1997), and Grossman (2003).

74 SGA, 81480, ‘EBIC Banks rescheduling seminar’, 28 and 29 November 1983.

75 Ibid.

76 Ibid.

77 SGA, 81480, ‘EBIC Banks rescheduling seminar’, 28 and 29 November 1983.

78 SGA, 81480, ‘Board of EBIC, 60^th regular meeting, Brussels, 4^th December 1985’.

79 SGA, 81480, ‘The Baker proposal’, December 1985.

80 SGA, 81480, ‘Board of EBIC 60th Regular Meeting, Brussels, 4^th December 1985’, p. 3.

81 Ibid.; BA, 0341-0004, ‘2. Market situation and current developments in cooperation between European payment systems’, Eurocheque international, undated.

82 SGA, 81480, ‘Introduction of the paper on European Payment Systems to the Board of EBIC’, 6 September 1984, p. 1

83 BA, 0341-0004, ‘2. Market situation and current developments in cooperation between European payment systems’, Eurocheque international.

84 HSBCA, UK 1617-0168, ‘European Payment Systems’, B.T. Allison, 12 September 1984.

85 On the libralisation of capital flows in Europe, see: Bakker (1996).

86 CACLA, 387 AH 65-68, ‘The Europartners: developing a joint strategy for the Single European Market’, January 1989.

87 CACLA, 387 AH 65-68, Letter from Antonio Zurzolo (Banco di Roma) to Walter Seipp (Commerzbank), 30 March 1989; Letter from Jean-Yves Haberer (Crédit Lyonnais) to Walter Seipp (Commerzbank), 21 February 1989.

88 BA, 0391-0153, ‘Crédit Lyonnais in Europe’, central planning department, September 1989, p. 5.

89 CACLA, 387 AH 65-68, ‘Une avancée déterminante en Europe à saisir par le Crédit Lyonnais’, undated but probably 1991.

90 SGA, 81484, ‘Restatement of Direction for EBIC’, November 1987.

91 SGA, 81484, ‘Extension of Membership’, 23 June 1988, p. 6.

92 Ibid.

93 Ibid., p. 6.

94 SGA, 81484, ‘Draft of a European Doctrine’.

95 Ibid.

96 BFA, journal Banque December 1992, ‘Les groupements européens de banques. L’exemple des Europartners’, Hansjörg Braun and Andreas de Maizière, head of Commerzbank A.G. Paris, pp. 1119–1120.

97 BNPPA, 50AH46, ‘Dresdner Bank. Entretien à Francfort’, E. Philippon, BNP Division Internationale, 9 March 1988. On the agreement between Amro Bank and Société Générale de Banque, see: Vincent and Tulkens (1998).

98 BNPPA, 50AH46, ‘Entretien du 22 Décembre 1987 avec les représentants de la DRESDNER BANK, Francfort’, J.H. Wahl, 5 January 1988.

99 BNPPA, 50AH46, ‘Réunion à Francfort le 16 mai 1988’, E. Philippon, 18 May 1988.

100 BNPPA, 50AH47, ‘Note sur le rapprochement avec la Dresdner Bank’, Michel Vaquin, direction de la stratégie et du développement, 4 December 1989.

101 BNPPA, 50AH47, ‘Note à l’attention de M. Wahl. Coopération avec la Dresdner Bank dans le domaine des grandes entreprises’, E. Rosenberg, 17 November 1989; BNPPA, 50AH47, ‘Dresdner Bank and BNP in board link’; Financial Times, 1989.

102 BNPPA, 50AH47, ‘Décrets du 12 juin 1989 portant nomination au conseil d’administration de la Banque Nationale de Paris’, Journal officiel de la République Française, 13 June 1989; Itschert and Ul-Haq (2004).

103 BNPPA, 50AH46, ‘Réunion à Francfort le 16 mai 1988’, E. Philippon, 18 May 1988.

104 BFA, Journal Banque, supplement to n°533, ‘Vers l’harmonisation des régimes bancaires en Europe’, Umberto Burani, secretary general of the European Banking Federation, December 1992.

105 BFA, journal Banque, December 1992, ‘Les groupements européens de banques. L’exemple des Europartners’, Hansjörg Braun and Andreas de Maizière, head of Commerzbank A.G. Paris, pp. 1119–1120.

Additional information

Funding

The European Union’s Horizon 2020 research and innovation programme716849 This project has received funding from the European Research Council (ERC) under the European Union’s Horizon 2020 research and innovation programme (grant agreement No 716849).