BNP Paribas at the heart of the Second World War: BNCI on several fronts

BNCI contributes to the war effort and the country’s reconstruction

Suspension of economic relations with enemy countries

When the Munich Agreements were signed in 1938, Winston Churchill had already accurately gauged the situation, pronouncing the words, “They chose shame. They will have war, too.” The future proved him right, with France and the United Kingdom declaring war on Germany on 3 September 1939, two days after the invasion of Poland. But it was earlier, in 1938, that the BNCI took measures against France’s “enemy” countries. As the bank’s circulars show, transactions with Italy and Germany were carried out more carefully, it being specified that “no commitment” was to be made regarding money market loans. These measures tipped the bank into a long-running war.

Contribution to the war effort and the war market

1939 was a pivotal year for the bank. From handling complicated monetary relations with the territories invaded by Germany, including Moravia and Bohemia, to blocking the assets of Germany from 1 September 1939, the BNCI had entered a war economy. A circular dated 26 September 1939 relates the bank’s contribution to the war effort and the war market. But this effort came to an abrupt end when the Germans invaded France during the Battle of France from 10 May to 25 June 1940 and imposed the signature of an armistice in Rethondes on 22 June 1940.

Serving the reconstruction for employees and the country

The Occupation placed the bank under the supervision of the Vichy government and German orders. After its involvement in a short-lived war effort, and after a period requiring it to comply with Vichy policy, BNCI resumed its role as an engaged bank by providing the necessary assistance for the country’s reconstruction, starting as early as June 1944.

The gradual liberation of France enabled the country to rebuild step by step. For the bank, the first key measure was the payment of an exceptional allowance to employees to provide for their needs, together with the payment of a housing allowance on 5 July 1946 for employees impacted by bombing.

From 19 May 1947 and the launch of “reconstruction bonds”, BNCI made it possible to finance the reconstruction of public buildings. These bonds were “intended to immediately provide the credit resources necessary to finance the reconstruction pending the realisation of long-term borrowing”. They were issued for a three-year period and exempt from tax, the interest being free of any tax and general income tax. The 2.5% rate was relatively low and issues were made in bonds of 1,000 francs to 5,000,000 francs.

The bank’s reconstruction strategy affected both its employees and the country as a whole. At the same time, the entire territorial network of BNCI had been affected by the conflict and the bank now had to rebuild it.

The bank restructures regionally

The blitzkrieg of 1940 reshaped the banking network

The bank had to retreat, both following the swift invasion of France in May and June 1940 and during the liberation of the country, starting in June 1944.

As early as 1938, branch securities were evacuated for protection. On 23 May 1940, the head offices in northern France and those close to the border with recently invaded Belgium, the Netherlands and Luxembourg were forced to retreat and withdraw. This was the case for numerous branches, from Boulogne-sur-Mer and Amiens all the way west to Angers. It was also true for the head offices from Lille to Caen, Valenciennes to Paris and Longwy to Bordeaux. Germany’s invasion of France forced BNCI to relocate its head offices and employees in a hurry.

For employees, the bank implemented a “land war risk premium” covering the “ordinary risks” of staff during the withdrawal. This aid covered bodily injury resulting from the bombings and the costs of hospitalisation and the forced suspension of work, as specified in a circular dated 25 May 1940.

Operation Overlord and the withdrawal of head offices to the west

At the time of the D-Day landings, bombardments intensified and the postal service was suspended. A circular dated 6 June 1944 requested that letters no longer be sent to the Rouen branch due to the bombings, while a 9 June circular suspended all post to the Caen, Bayeux, Deauville and Valognes branches. On 12 June 1944, the Cambrai branch was transferred as a result of the bombing.

The bank was fully focused on mitigating the numerous risks stemming from the invasion of France. And territorial reorganisation was a key concern.

The bank shows its social dimension

Fatherless families

The war resulted in victims, displaced people, broken families, imprisoned fathers, and wives left alone with their children. In response, BNCI developed “support offers” for its employees.

The first issue to be addressed was forced labourers in Germany. BNCI set up a system of expulsion allowances and family allowances for employee families whose fathers were taken prisoner to work in Germany. The Germans took 70,000 such prisoners in 1942 and as many as 650,000 between 1942 and 1944. The allowances were paid to the “delegatees”, i.e. the wives of the men held captive in Germany. The issue of fatherless families thus became central to BNCI’s social policy.

BNCI promotes the family with numerous aid programmes

With France gradually liberated, the bank broadened its range of aid schemes. It created provisions for workplace accidents occurring during wartime. An assistance fund, “Entr’aide”, was set up on 26 June 1944 for bank employees having been physically injured during the war or having incurred damage to their homes. From 30 March 1945, the bank developed a set of multi-faceted assistance schemes, including common and simplified provisions for family allowances and the single wage premium, birth premiums, allowances for dependent relatives, a marriage loan, a household allowance, a schooling allowance, a contribution to children’s summer-camp holidays, and allowances for marriage or death.

The Provisional Government of the French Republic having created the social security system on 19 October 1945, a BNCI circular dated 28 March 1947 confirmed the bank’s membership of the social security scheme for family benefits. The bank then went on to introduce an allowance for mothers of families with at least five children.

At the end of the Second World War, BNCI was able to resist and survive thanks to its organisational spirit and unwavering proactiveness. In the years after the conflict, it worked to protect both its business operations and employees while contributing to the reconstruction.