PARIS, Feb 5 (Reuters) - The French Treasury and central bank urged Credit Mutuel Arkea on Monday to present details about the impact that would result from its potential split from cooperative bank Credit Mutuel.
The board of Credit Mutuel Arkea, part of France's fifth-biggest lender, gave its management approval this month to do whatever was necessary to break away from its parent group of cooperative banks. Members of Credit Mutuel Arkea's local banks will vote in the first half of 2018 on whether to proceed.
French Treasury chief Odile Renaud-Basso and central bank Governor Francois Villeroy de Galhau told Credit Mutuel Arkea's President Jean-Pierre Denis in a letter that a detailed scenario about the potential split should be presented to local banks.
They said the government did not want to change existing legislation for cooperative banks to make the split happen.
Credit Mutuel Arkea, made up of regional banks in western and central France and now seeking financial independence from its parent, has challenged the European Central Bank's power to oversee the whole network of lenders as a single entity. Credit Mutuel Arkea said in a statement that it was in discussions with the ECB and the French authorities about its plan.
(Reporting by Maya Nikolaeva; Editing by Edmund Blair)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.