SFIL
SFIL, known until 2015 as Société de Financement Local, is a French public credit institution spun off in February 2013 from the publicly rescued Dexia. SFIL operates in local public sector financing and large export credit contracts refinancing, in commercial partnership with publicly owned bank La Banque Postale (LBP). Since 2020 it has been fully owned by Caisse des Dépôts et Consignations (CDC), France's major public financial institution, but for a single share still held by the French state.
SFIL has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank.[1][2]
History
[edit]2013-2018: creation and first years
[edit]The Société de financement local, or SFIL, was created in 2013 following the process of overhauling Dexia, a Franco-Belgian bank.[3] It obtained an authorisation from the French Prudential Supervision and Resolution Authority, which allowed it to carry out banking activities.[4]. Following the introduction of European Banking Supervision in late 2014, it was designated a Significant Institution and is therefore directly supervised by the European Central Bank.[5]
It also mobilises long-term investors to offer local public entities, healthcare establishments and exporters favourable terms to finance investments deemed essential for France. For example, in 2014 it granted a new loan of twenty million euros to the government of French Polynesia to enable it to finance new investments and restructure its debt.[6]
2018: buyout by the Group Caisse des dépôts
[edit]In November 2018, the Caisse des dépôts et consignations group (CDC) announced the buyout of SFIL from the Agence des participations de l'État (APE), while its shareholding was split between CDC itself, which helds 20%, the French State, which helds 75% via the APE, and La Banque postale, which helds the remaining 5%.[7] The objective was to work closely with the newly created Banque des Territoires.[7] It was also a subject of negotiations between CDC and APE, during the takeover of CNP Assurances by La Banque postale.[7] CDC's stated aim was to create a large-scale public financial pole, integrating all these entities as well as Bpifrance.[8] That year, SFIL declared a net banking income of €186 million and a net profit of €63 million.[8] On 30 September 2020, CDC became SFIL's sole shareholder, with the exception of one ordinary share hold by the French State.[4] This allowed it to sit on the board of directors as a non-voting member, given that SFIL carries out a public interest mission.[8]
In 2023, SFIL declared a net profit of €65 million, boosted by a sharp increase in export financing.[9] This became its leading activity, with €6 billion worth of projects financed that year.[9] As of summer 2024, total lending to the local public sector had exceeded €50 billion, of which €45 billion was allocated to local authorities.[4] Green loans, aimed at combating climate change, accounted for €1.15 billion, or around 20% of this total.[10] Social loans, granted to local elected representatives to finance health, social and family action, reached the amount of €869 million, or around 14%.[10]
Financing activities
[edit]In May 2015, the French government directed SFIL to expand its operations to refinancing of major export credit contracts (above 70 million euros) guaranteed by Bpifrance Assurance Export, the export guarantee arm of Bpifrance. The name change from Société de Financement Local to SFIL reflected that expansion of the bank's scope of activity. Also in 2015, the bank made profits for the first time.[11] The transaction was completed in September 2020.[12]
In 2017, SFIL became the leading liquidity provider for state-guaranteed export credit, with 50 percent market share. SFIL operates in partnership with all commercial banks active in French export credit.
In March 2018, the government extended SFIL's export system to strategic projects carried out by French companies abroad benefiting from a public guarantee.
In 2013–2017, SFIL and its fully owned subsidiary Caffil raised more than 31 billion euros in long-term financing. As such, Sfil/Caffil was the second-largest public bond issuer in France, behind the government itself. Caffil refinances medium-term and long-term loans made by LBP (in partnership with the Caisse des Dépôts) to local authorities and public hospitals.
See also
[edit]References
[edit]- ^ "The list of significant supervised entities and the list of less significant institutions" (PDF). European Central Bank. 4 September 2014.
- ^ "List of supervised entities" (PDF). European Central Bank. 1 January 2023.
- ^ Wajsbrot, Sharon (10 June 2015). "Dexia, l'étrange destin d'une banque fantôme". Les Echos (in French). Retrieved 1 May 2025.
- ^ a b c Lefebvre, Florian (7 October 2024). "Qu'est-ce que la SFIL ?". Le Journal du dimanche (in French). Retrieved 3 May 2025.
- ^ "List of supervised entities" (PDF). European Central Bank. 1 January 2023.
- ^ Stambouli, Samia (23 April 2014). "Compte-rendu du Conseil des ministres". Radio 1 (in French). Retrieved 1 May 2025.
- ^ a b c Drif, Anne; Wajsbrot, Sharon (15 November 2018). "L'ex-Dexia revient dans le giron de la Caisse des Dépôts". Les Echos (in French). Retrieved 5 May 2025.
- ^ a b c Gueugneau, Romain (1 October 2019). "L'ex-Dexia passe sous le contrôle de la Caisse des Dépôts". Les Echos (in French). Retrieved 7 May 2025.
- ^ a b Gueugneau, Romain (20 February 2024). "La SFIL, filiale de la Caisse des Dépôts, portée par le crédit à l'export". Les Echos (in French). Retrieved 18 May 2025.
- ^ a b Armand, César (13 February 2025). "Climat : les collectivités territoriales accélèrent leurs investissements". La Tribune (in French). Retrieved 18 May 2025.
- ^ Romain Gueugneau (10 October 2019). "L'ex-Dexia passe sous le contrôle de la Caisse des Dépôts". Les Échos.
- ^ Melanie Kiene (20 January 2023), Caisse Française de Financement Local: Issuer View, NORD/LB
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