Said : Bernard Esambert in an interview with Les-crises, a French blog intended to provide maximum information on the current crises - economic and social. The interview was conducted on January 14, 2013.
Born in 1934, Bernard Esambert was Industrial and scientific adviser to President of the French Republic Georges Pompidou from 1969 to 1974. He was also the President of the Institut Pasteur from 1994 to 1997.
According to Bernard Esambert, French banks have been constantly increasing their cash flow for two reasons. The first, not to get eaten by a large British bank, German or American, and second, to eat the neighbor.
"Therefore, both to guard against a takeover bid from elsewhere, and in order to make a takeover bid for a domestic bank, these banks have sought to greatly increase their income so as to have a substantially increased market capitalization. But how can you massively increase earnings without attracting by making extra deposit accounts which requires enormous efforts," he added.
"We worship the bank size in France but it is not unjustified. To support our major industrial champions in the world requires a large bank and for my part, I do not mind practicing a bank patriotism as I practice an industrial patriotism, common indeed to all major Western countries. It would not occur to the mind of any American to question the nationality of Microsoft or General Motors ..."
Bernard also made it clear that in order to escape from a foreign predator and to become one domestically, banks needed to develop new business products, and not just any, risky product to achieve significantly improved results. But it wasn't easy to massively increase earnings without taking risks. Most large banks, therefore, started to introduce new original products - from low risk to very risky ones.
Agreeing with the interviewer, Olivier Berruyer, Founder of Les-crises blog, Bernard said : "Yes, we have almost forgotten that it is difficult to have high profitability without having a high risk.."
Read full interview here : Part 1 - Part 2.