Crédit Foncier de France
Encyclopedia
Crédit Foncier de France is a national mortgage
bank
of France
. A subsidiary
of the Groupe Caisse d'Epargne
, its headquarters is located in Charenton
, 100 metres outside the Paris
city limits.
, and sanctioned by Emperor Napoléon III
in 1852 in an attempt to modernize the medieval French banking system and expand French investment outside Europe
. Its name became the “Banque Foncière of Paris
.” Similar institutions at Nevers
and Marseilles were amalgamated into one under the title of “Crédit Foncier de France.” The amount of the loan could not exceed half of the value of the property pledged or hypothecated, and that the repayment of the loan was by an annuity
, which included the interest and part of the principal, terminable at a certain date. The Crédit Foncier had a monopoly on mortgages.
In modern banking terminology a “credit foncier” loan is a loan for a fixed period with regular repayments where each repayment includes components of both principal and interest, such that at the end of the period the principal will have been entirely repaid. This is to be contrasted with an “interest only” loan where the repayments are of interest only.
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
of France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
. A subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of the Groupe Caisse d'Epargne
Groupe Caisse d'Epargne
Groupe Caisse d'Epargne is a French semi-cooperative banking group, founded in 1818, with around 4700 branches in the country. The group is active in retail and private banking, as well as holding a significant stake in the publicly traded investment bank Natixis.-Operations:The group's most...
, its headquarters is located in Charenton
Charenton-le-Pont
Charenton-le-Pont is a commune in the southeastern suburbs of Paris, France. It is located from the centre of Paris. It is one of the most densely populated municipalities in Europe....
, 100 metres outside the Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
city limits.
History
The Crédit Foncier (English: landed credit) initially made loans to communes. The movement was initiated by Louis WolowskiLouis Wolowski
Louis-François-Michel-Reymond Wolowski was a Polish writer on economics and politician, naturalised in France.-Life:...
, and sanctioned by Emperor Napoléon III
Napoleon III of France
Louis-Napoléon Bonaparte was the President of the French Second Republic and as Napoleon III, the ruler of the Second French Empire. He was the nephew and heir of Napoleon I, christened as Charles Louis Napoléon Bonaparte...
in 1852 in an attempt to modernize the medieval French banking system and expand French investment outside Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
. Its name became the “Banque Foncière of Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
.” Similar institutions at Nevers
Nevers
Nevers is a commune in – and the administrative capital of – the Nièvre department in the Bourgogne region in central France...
and Marseilles were amalgamated into one under the title of “Crédit Foncier de France.” The amount of the loan could not exceed half of the value of the property pledged or hypothecated, and that the repayment of the loan was by an annuity
Annuity (finance theory)
The term annuity is used in finance theory to refer to any terminating stream of fixed payments over a specified period of time. This usage is most commonly seen in discussions of finance, usually in connection with the valuation of the stream of payments, taking into account time value of money...
, which included the interest and part of the principal, terminable at a certain date. The Crédit Foncier had a monopoly on mortgages.
In modern banking terminology a “credit foncier” loan is a loan for a fixed period with regular repayments where each repayment includes components of both principal and interest, such that at the end of the period the principal will have been entirely repaid. This is to be contrasted with an “interest only” loan where the repayments are of interest only.