Following the decision not to open a banking branch in France, Triodos Bank has started consultation with relevant representative bodies on its intention to close the intermediary office currently operating in Paris.
Background on Triodos Bank in France
Triodos Bank is a values-driven bank with a unique mission. Triodos Bank considers itself a European bank, making use of the European Banking Directive, which allows banks to open branches in European countries under the banking licence of their home country. For Triodos Bank the home country is the Netherlands. Triodos Bank currently has bank branches in the Netherlands, Belgium, Spain and Germany and operates through a wholly owned limited company in the United Kingdom.
Since 2005, Triodos Bank has been granting loans in the French renewable energy sector via its Belgian branch. In 2012, Triodos Finance B.V. was created, and this was considered a first step towards establishing a bank branch in France in due course.
Triodos Finance B.V. prepared plans to open a branch and developed a business banking network in key sectors, while bringing new loans to Triodos Bank Belgium.
In 2018, it was decided to continue the French presence as an intermediary for the foreseeable future and to postpone opening a branch.
Interest rates remain low throughout 2019 and this is expected to continue for a longer period of time. In addition, financial institutions are facing considerable additional regulatory costs. A branch in France would be faced with the same low interest rate climate and growing regulatory costs. The large investment needed to open a branch is seen as not justifiable in this climate.