Nothing to do with Arval or ALD shareholders

Grant a loan to an undertaking which wishes to acquire its vehicles... nothing more classic for a bank. Idem for the granting of a lease. But what about the ull It is to rent the car fleet to a company, which no longer has to load constraints related to the goods themselves (tracking of maintenance, insurance, resale). This activity seems to be well away from the business of bankers, which some have yet become the major players in this market. This is the case of BNP Paribas and Société Générale, with their respective subsidiaries Arval and ALD Automotive.

To explain the success of banking institutions in the LLD, Anatole of brush, partner with the Sia Board strategy consulting firm, said that "a landlord must be able to finance the acquisition of vehicles in good condition". It is here that a subsidiary of Bank has a real competitive advantage since its parent does find the necessary money. And in this area, banks duly the pawn to subsidiaries of financing of manufacturers specialized in LLD.

Well placed to finance

"Banks may use the term deposits which their entrusted, but they are also very effective to find liquidity in the financial markets, said Jean-Baptiste Bellon, banking analyst at Trapeza Council.". When risk-free rate is 3, a classic Bank can raise money at 4, while the subsidiary of a constructor must pay up to 6 or 7. "This gap was less important before the crisis. The current context therefore promotes the banks and some appear to be particularly well placed. "Our parent company receiving a very good rating, it can finance in better conditions that most of the other banks, says Laurent Tréca, the BNP Paribas Group, is CEO of Arval." And then she sent us capital by extracting a margin of a few basis points, which is very low a basis point is 0.01, Editor's note. Thus, we can be more efficient or more competitive than our competitors.

Before his involvement in 2004 Volkswagen and two funds, ABN-AMRO, long held the LLD, Lease Plan giant. The latter will soon again host a banker, German Friedrich von Metzler, capital, at the exit of two investment funds. "It is reassuring to have, alongside a major constructor, a solid and respected banker as a shareholder," says Bart Beckers, who leads Lease Plan France. However, Friedrich von Metzler is a family establishment. Nothing to do with Arval or ALD shareholders.

In addition to Lease Plan and builders, GE Capital Solutions, a subsidiary of the US conglomerate General Electric, is another great adversary of Arval and ALD. "The financing of GE Capital Solutions is through the GE Group, who has access to capital markets", says Thomas Zink, Marketing Director of GE Capital Solutions. Group GE with a very good rating, "it is better placed than the manufacturers to raise money, but not quite as good conditions as a well graded classical Bank", analyzing Jean-Baptiste Bellon.

Although banks are favored on the ull market, some are left, like ABN Amro, Barclays, or Deutsche Bank, who assigned this branch. The question of possible other stalls deserves to be put to the time where activity is suffering from the collapse of the market of the opportunity. "The current context is certainly difficult, but it is the case for most sectors, said Anatole of the brush." Normally, the LLD is very profitable for banks. Some have given their entries for internal reasons. This is not indicative of a trend. "Banks would not have interest, in absolute terms, to leave the sector. "Regardless of how a company wants to finance its vehicles, it is important that his request could be satisfied within our group, explains Jean-François Gautier, Director, the Société Générale Group, SFS (specialty financial services) and ALD International. This is why LLD is but also strategic than traditional credit and leasing activities. "In summary, banking their good position on the financial markets, but also benefit from their proximity with businesses. Indeed, any company, for its operational activities, is necessarily in connection with a Bank, which is therefore well placed to propose its services to businesses, in the field of motor vehicles.