Economy: The Questionable Practices Of French Banks Revealed

For centuries, banks have dominated our economy, asserting themselves as the undisputed masters of the financial system. But behind this respectable facade, there are less than flattering practices. The study conducted by 60 million consumers reveals that major banks, such as BNP Paribas, Société Générale, and Crédit Agricole, accumulate social, environmental, and fiscal abuses. This damning observation highlights questionable management that deeply impacts their clients and the economic future.

Economy and environment: the hidden cost of major banks

Major banks, supposed to be the pillar of the global economy and logically in the green after the appointment of Michel Barnier as Prime Minister, turn out to be major players in questionable environmental practices. The study conducted by several NGOs, associated with 60 million consumers, shows that institutions like Crédit Agricole, Société Générale, and BNP Paribas are not as virtuous as they claim to be.

#Banques : une #éthique dans le rouge !
"60 Millions" présente ce matin à la presse la toute 1ère étude comparative des groupes bancaires français à partir de leurs orientations sociales, environnementales et fiscales.
Avec @LionelMaugain et @ninagodart

— 60 Millions de consommateurs (@60millions) September 26, 2024

Their massive support for fossil projects or industries responsible for deforestation is damning evidence. Crédit Agricole, often referred to as the “green bank,” has invested 243 million euros in companies involved in Brazilian deforestation, while BNP Paribas has loaned nearly 2 billion euros to these same industries.

These banks, while displaying environmental commitments, do not hesitate to maximize their profits, often at the expense of the planet’s ecological future.

In terms of fiscal transparency, it’s a real festival of optimization. Société Générale, for example, has invested 16% of its profits in tax havens. But that’s not all: these major banks are also adept at circumventing anti-money laundering and counter-terrorism financing measures.

Here are some key figures from the report:

• Crédit Agricole: 243 million euros in deforestation;
• BNP Paribas: 2 billion euros loaned to destructive companies;
• Société Générale: 16% of profits in tax havens.

All this leaves a bitter taste regarding the real commitment of these institutions to a more sustainable future.

TradFi: social and tariff practices under scrutiny

The traditional finance (TradFi) world is also under fire by this report, revealing that major banks, especially BNP Paribas and Société Générale – the latter being behind a Euro stablecoin project recently deployed on Solana, implement extremely harsh social and tariff policies towards their most vulnerable clients. The management of overdrafts and exorbitant bank fees have become a real nightmare for those facing financial difficulties.

These establishments do not hesitate to charge exorbitant prices for notification letters regarding debit accounts, further burdening already distressed clients.

Société Générale stands out with a staggering wage gap: its CEO, Slawomir Krupa, receives 45 times the average salary of its employees.

Inequalities do not stop there. The study highlights a glaring inequality in gender parity within senior management positions. The governance of these establishments remains predominantly male, and efforts to promote real gender equality remain timid at best.

From a general perspective, TradFi seems to be entirely out of touch with current social expectations, far from the ideals of justice and solidarity it should embody.

This observation raises a fundamental question: how can banks, supposed to serve the economy and their clients, justify such practices? It becomes evident that promises of social and environmental responsibility are often just a facade to mask deep-seated abuses.

Fortunately, banks like Goldman Sachs and BNP Paribas are beginning to integrate bitcoin (BTC) and other cryptocurrencies into their ecosystems, proving that some financial institutions are finally becoming aware of the challenges of the future. Or is it a smokescreen?