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Bank of Brussels

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Bank of Brussels
Native name
French: Banque de Bruxelles, Dutch: Bank van Brussel
Company typePrivate company
IndustryFinancial services
Founded1871 (1871)
FoundersJacques Errera, Giacomo (Jacques) Errera
Defunct1975 (1975)
FateMerged
SuccessorBanque Bruxelles Lambert
Headquarters
Brussels
,
Belgium
Area served
Belgium, Netherlands, Africa
ProductsBanking services, investment banking

The Bank of Brussels (French: Banque de Bruxelles, Dutch: Bank van Brussel) was a prominent bank in Brussels, established in 1871 and merged in 1975 with Banque Lambert to form Banque Bruxelles Lambert. It was Belgium's second-largest bank for most of its existence, behind the Société Générale de Belgique and, from 1934 onwards, its spun-off banking subsidiary.[1]: 20,49 

History

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The bank's head office in the Palace of the Count of Flanders, photographed in 1910

In 1871, Venetian Jewish banker Giacomo (Jacques) Errera [fr] created the Banque de Bruxelles with support from a group of Dutch and German financiers including his father-in-law, Frankfurt-born banker Joseph Oppenheim. Following the downturn of the mid-1870s, the fledgling bank encountered financial distress, and Errera had to liquidate and re-establish it in 1877 on a smaller scale. Its operations and investments grew rapidly in the late 19th century.[2]

In 1916, under the German occupation of Belgium during World War I, the Banque de Bruxelles took over the Banque Internationale de Bruxelles. The latter, established at 27 Avenue des Arts on the corner with Rue de la Loi,[3] had been jointly created in 1898 by the Deutsche Bank, Darmstädter Bank, Disconto-Gesellschaft, Berliner Handels-Gesellschaft, and A. Schaaffhausen'scher Bankverein.[4][5]

In 1920, led by its new chairman Maurice Despret [fr], the Banque de Bruxelles established the Crédit General du Congo (also known as Crégéco), legally registered in Léopoldville with administrative headquarters (French: siège administratif) at Rue Royale 66 in Brussels.[6] In 1929, Banque de Bruxelles transferred Crégéco's banking operations to a newly created affiliate, the Banque Belge d'Afrique, while retaining Crégéco as a listed investment company. The BBA operated from the back of the Banque de Bruxelles building, at rue de Namur 3.[7]: 819 

In 1930, the Banque de Bruxelles controlled a rapidly expanding network of 20 local banks with 400 offices,[1]: 20  which it fully absorbed the next year into the parent banking entity.[1]: 21  Following the financial turmoil of the early 1930s, Belgium passed legislation in 1934 that forced separation between commercial banks and investment companies. As a consequence, the Banque de Bruxelles' parent company was renamed as Société de Bruxelles pour la finance et l'industrie, abbreviated as Brufina, while a new banking subsidiary was formed on 30 January 1935 under the name Banque de Bruxelles.[8] Following the initial public offering of the new entity's share, Brufina held 71 percent of the Banque de Bruxelles's equity.[1]: 53  In 1937, Brufina in turn fell under the control of Belgian businessman Paul de Launoit [nl] through his holding company the Compagnie financière et industrielle (Cofinindus). As a result, the Banque de Bruxelles formed the banking hub of a cluster of industrial, financial and colonial businesses subsequently known as the groupe de Launoit, second only to the Société Générale de Belgique.

De Launoit and the Banque de Bruxelles ambiguously navigated the harsh conditions of the German occupation of Belgium during World War II, participating in economic activity benefiting the Nazis,[9] while simultaneously hosting a resistance network in the bank's own premises in central Brussels.[10]

In 1948, Crégéco was renamed the Compagnie Financière Africaine (FINAF),[11] which later became the Compagnie financière et de gestion pour l'étranger (Cometra).[12]: 12 

The bank expanded its Belgian branch network in the 1960s, in competition with established incumbents the Générale de Banque in Wallonia and Kredietbank in Flanders.[13]: 94  In 1962, it acquired Antwerp-based Banque de Commerce from Barclays which received Banque de Bruxelles equity in exchange;[12]: 7  in 1965, it allowed the Chase Manhattan Bank to acquire joint ownership of Banque de Commerce, whose head office was subsequently relocated from Antwerp to Brussels in 1968.[12]: 8 

In October 1969, Brufina sold part of its residual stake in Banque de Bruxelles to Algemene Bank Nederland (ABN), then repurchased some of it following a political backlash. As a result, by 1972 the bank's largest shareholders were Brufina with 7 percent, ABN with 3.5 percent, and Barclays with 3.2 percent.[12]: 9 

As early as 1953, Paul de Launoit started considering the option of a merger between the Banque de Bruxelles and the Banque Lambert. Discussions to that effect started in 1969 and continued throughout the early 1970s.[14]: 11  In 1972, the Banque Lambert's controlling shareholder Léon Lambert merged his two holding companies, Compagnie Lambert pour l'Industrie et la Finance (CLIF) and Cofinter, with Cofinindus and Brufina to create a single entity, named Compagnie Bruxelles Lambert pour la Finance et l'Industrie (CBLFI), with a combined 10 percent stake in the Banque de Bruxelles and majority control of Banque Lambert.[15] In October 1974, in a context of high exchange rates volatility and due to inefficient internal controls, the Banque de Bruxelles incurred a major financial loss of around 3.5 billion Belgian francs on foreign-exchange markets,[13]: 97  tilting the balance in the merger talks in favor of Banque Lambert. As a consequence, the latter was able to secure dominant influence in the merged entity in 1975, including the inclusion of the Lambert name in the merged entity's brand of Bank Brussels Lambert,[13]: 102  and the choice of Jacques Thierry, an associate of Léon Lambert, as chief executive (French: président du comité de direction) of the combined entity. The merger was completed on 30 June 1975.[14]: 12 

Leadership

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The successive chairs of the bank were:[16]

Alexandre Lamfalussy was the bank's managing director (French: Président du Comité de Direction) from 1965 to 1975.

See also

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Notes

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  1. ^ a b c d Federal Reserve Board (June 1944), Army Service Forces Manual M361-5 / Civil Affairs Handbook Belgium Section 5: Money and Banking, Washington DC: U.S. Army Service Forces
  2. ^ "Bank Brussels Lambert". Encyclopedia.com.
  3. ^ "Banque Internationale de Bruxelles". Stad Kortrijk.
  4. ^ "Bank Brussels Lambert". Encyclopedia.com.
  5. ^ Jacob Riesser (1911), The German Great Banks and Their Concentration in connection with The Economic Development of Germany (PDF), Washington DC: National Monetary Commission
  6. ^ Jean-Luc Ernst. "Crédit Congolais". Stanleyville Kisangani hier et aujourd'hui.
  7. ^ Bulletin Officiel du Congo Belge (PDF), 15 June 1953
  8. ^ "ING Brief history". ING Group. Retrieved June 4, 2014.
  9. ^ John Gillingham (1974), "The Baron de Launoit : A case study in the "politics of production" of Belgian industry during Nazi occupation" (PDF), Revue Belge d'Histoire Contemporaine
  10. ^ Yaëlle Van Crombrugge (2013), Les espions Zéro dans l'ombre du pouvoir 1940-1944 (PDF)
  11. ^ "26. Crédit Général du Congo S.A. (CREGECO)". BooneShares.
  12. ^ a b c d "L'internationalisation du système bancaire belge", Courrier Hebdomadaire du CRISP, 551, 1972
  13. ^ a b c Ivo Maes and Sophie Péters (2014). Alexandre Lamfalussy : Le sage de l'euro. Brussels: Racine.
  14. ^ a b Anne-Myriam Dutrieue (2010), Le baron Léon Lambert, un banquier et financier belge d'envergure internationale du XXe siècle (PDF)
  15. ^ Clyde H. Farnsworth (30 September 1972). "Baron Lambert Creates a Giant". The New York Times.
  16. ^ Manfred Pohl (1994). "Le système bancaire en Belgique à travers les siècles - Banque Bruxelles Lambert". Handbook on the History of European Banks. Frankfurt: Edward Elgar Publishing. ISBN 1-85278-919-0.
  17. ^ Michèle Merger and Dominique Barjot (1998). Les Entreprises et leurs Réseaux : hommes, capitaux, techniques et pouvoirs, XIXe et XXe siècles. Paris: Presses de l'Université de Paris-Sorbonne. pp. 462–463, 467–468.
  18. ^ a b René Brion and Jean-Louis Moreau (1998). La Société Générale de Belgique 1822-1997. Fonds Mercator. pp. 185–186, 256.
  19. ^ Jean-Paul Bombaerts (11 August 2011). "Max-Léo Gérard, l'ingénieur-ministre". L'Écho.
  20. ^ "Louis Camu : notice nécrologique" (PDF). Université de Liège.
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