Banca Nazionale del Lavoro (BNL), loyal servant to the Italian economy
Over the course of a century, Banca Nazionale del Lavoro (BNL) became one of the key drivers of Italy’s development. Established in 1913 by royal decree, the ‘national bank for labour’ joined the BNP Paribas Group in 2006.
The Istituto Nazionale di Credito per la Cooperazione (INCC) was established on 15 August 1913 by decree of the King of Italy, Victor Emmanuel III.
Its aim was to support the transformation of the Italian economy, which had until then been primarily rural. The cooperative movement received targeted assistance to drive industrialisation. For example, the INCC was the first institution to introduce dedicated credit lines for agriculture, fishing, and the film industry.
In the mid-1920s the cooperative system encountered a serious crisis and the new bank had to be restructured.
On 19 May 1927, the INCC changed its name. Victor Emmanuel III officially established the Banca Nazionale del Lavoro per la Cooperazione by royal decree. Two years later, the bank became a fully fledged public credit institution under the name Banca Nazionale del Lavoro (BNL).
In March 1929 the Fascist government decided to transform the bank into a state-run entity, under the supervision of the Treasury, and gave it a new name: Banca Nazionale del Lavoro. BNL’s main business was providing loans and it achieved strong growth, especially in its international network.
After the Second World War, BNL played an active part in Italy’s economic reconstruction and was closely involved both in the growth of the film industry and automaker FIAT’s plans for modernisation. The bank also had a key role in the ‘Green Plan’ – i.e. the disbursement of loans under the Marshall Plan to promote agriculture and development in the south of Italy.
By 1964, BNL had become the leading financial institution in Italy. However, its power waned with the slowdown in the economy during the 1970s.
Increasing competition, the process of bank sector liberalisation and the European drive towards open markets all led to structural reforms and to the eventual sale of BNL out of State hands: the bank was privatised in 1998.
In 2006, following a lightning operation which lasted just one week, BNP Paribas took control of BNL, thus making Italy BNP Paribas’ second ‘domestic’ market. By the time BNL celebrated its 100th anniversary in 2013 it had become a thoroughly modern bank.
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