Crédit Municipal de Paris returns 42 million euros to the City of Paris

In view of its excellent financial health and in accordance with the commitment it had made to the Chambre Régionale des Comptes, Crédit Municipal de Paris has proposed, at the end of the extinctive management of its banking subsidiary, to return the 42 million euros that the City of Paris had put into the recapitalization of the establishment in 2015. This capital will be drawn from Crédit Municipal de Paris' own funds. The proposal by the public credit and welfare institution, of which the City of Paris is the sole shareholder, was validated by Crédit Municipal's Conseil d'Orientation et de Surveillance (COS) on December 8, 2022.

In 2015, the City of Paris decided to recapitalize Crédit Municipal de Paris to the tune of 42 million euros, and to support the decision to put its banking subsidiary, CMP-Banque, into extinctive management. Now completed, this extinctive management has been perfectly carried out and its cost has been limited, thanks in particular to the sale of receivables on satisfactory terms. Crédit Municipal de Paris's solid financial situation and exemplary commitment led it to decide to return the 42 million euros to its shareholder, the City of Paris.

"Through this operation, which is unprecedented for a public institution, we are proud to demonstrate our sound management of public funds. We remain deeply faithful to our social vocation, as demonstrated by the recent measures we have taken for our customers and beneficiaries, and by our support for public-interest associations", explains Frédéric Mauget, General Manager of Crédit Municipal de Paris.

This transaction in no way hinders the bank's ambitious development plan, set out in its Héraklès Strategic Plan, which aims to modernize the bank, reduce its carbon footprint and improve its quality of service, as well as the well-being of its employees. Nor does it call into question the commitments made to financially fragile populations, which Crédit Municipal de Paris regularly supports. Last but not least, the bank's capitalization far exceeds the requirements of the Banque de France and European banking standards.