Approval of compensation granted to La Banque Postale to facilitate access to banking services

Background and further information:

In France, the Livret A is an instant-access regulated, interest-bearing savings account. The interest is exempt from income tax. All banks can offer it. Since 2009, the French authorities have imposed a number of additional obligations on La Banque Postale linked to the distribution of the Livret A in order to meet a need for banking accessibility. These obligations constitute the general interest task entrusted to La Banque Postale of ensuring banking accessibility. Its purpose is to facilitate access to banking services by economically disadvantaged people, without stigmatising them and without creating unjustified distortion of competition. A significant number of disadvantaged people use La Banque Postale's Livret A to access basic banking payment services.

La Banque Postale receives compensation from the French State for discharging these public service obligations. The Commission found that this compensation does not exceed the net cost of discharging these public service obligations. Moreover, if overcompensation should occur, a procedure has been put in place requiring La Banque Postale to repay any excess compensation to the French State. On this basis, the Commission concluded that the French measures were in line with EU State aid rules.

The Commission assessed the measure under Article 106(2) of the Treaty on the Functioning of the European Union and the rules on the provision of services of general economic interest (SGEIs).

The European Commission announced on 24 October 2017 that the compensation of €1.83 billion granted to La Banque Postale over six years for the provision of a service of general economic interest (SGEIs) of banking accessibility is in compliance with EU state aid rules.

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