Société Générale de Belgique

The Société générale de Belgique (Dutch: Generale Maatschappij van België, lit. 'General Company of Belgium'; often referred to in Belgium simply as "Société Générale"), originally Algemeene Nederlandsche Maatschappij ter Begunstiging van de Volksvlijt (lit. 'General Netherlands Society for Advantage to the National Industry') until 1830, was a large investment company in Belgium which existed between 1822 and 2003. Until 1935 it was simultaneously a major bank, spun off that year and later known as Générale de Banque.[1]

This article is about the former Belgian bank and holding company. For the French bank, see Société Générale. For other companies named "Société Générale", including in Belgium, see Société Générale (disambiguation).
The Société Générale de Belgique's former seat (1934-2003) on 20 rue Royale in Brussels, later used by Fortis and now part of the headquarters complex of BNP Paribas Fortis

The Société Générale was originally founded as an investment bank by William I of the Netherlands in 1822 when Belgium was under his rule within the United Kingdom of the Netherlands. After the Belgian Revolution in 1830, it was the new country's dominant financial institution, even after the creation of the National Bank of Belgium in 1850. Its investments in the national economy contributed to the rapid development of the Industrial Revolution in the country. As a holding company, the Société Générale exercised considerable indirect control over the economy of Belgium and of the Belgian Colonial Empire.

The Société Générale went through multiple restructurings throughout the 20th century. In 1988, the Paris-based Suez Company took over the Société Générale through a competitive takeover bid. In 2003, Suez brought the Société Générale to an end by merging it with Tractebel, another of its subsidiaries.

History

As part of the terms of the Treaty of Paris in 1814, the countries of Europe agreed to augment their armed forces from militias to standing armies. Although Belgium had been offered independence by the Prussians, Lord Castlereagh vetoed it on the grounds that the country was too small to be economically viable, and the question then arose of who should govern it, the Austrians having washed their hands of it as a historical accident of the breakup of the Habsburg empire. Although William I of the Netherlands refused initially on the grounds of the added expense involved in maintaining the said army, Castlereagh persuaded him by asking him if he preferred to be Prince of Orange or King of the Netherlands, adding that from a practical point of view the Belgian Ducal Estates amounted to a third of the country. He therefore founded the Algemeene Nederlandsche Maatschappij in 1822 to administer these estates, namely with the overt goal of increasing the welfare of the country, but with the covert objective of covering these costs. As the Standing Army project never got taken seriously by the rest of Europe in practice, and the delivery of the Company proved insufficient, the objectives changed in 1826 to the delivery of ƒ 500 000 a year as a "pension" to the king's personal account. King William I was the single largest shareholder of the Algemeene Nederlandsche Maatschappij at its founding.[2]: 3 

After the Belgian Revolution of 1830, the company became Belgian, under the French name Société Générale de Belgique, and it retained the Estates, which were sold off at low prices to the immediate circle of the Board.

By 1914, the Société Générale was by far the largest bank in Belgium, operating in conjunction with 18 affiliated banks in the country which it practically controlled.[2]: 5  Under the harsh German occupation of Belgium during World War I, as the National Bank of Belgium had moved its operations and reserves to London, the Société Générale became formally the central bank for the country by creating a monetary issue department within itself. It remained secretly in contact with the National Bank in exile, however, and effectively acted on behalf of the latter; so that when Belgium recovered its sovereignty, the National Bank took over all liabilities and assets of the Société Générale's issue department, which was subsequently closed.[2]: 11 

In 1928, the Société Générale absorbed the Banque d'Outremer and thus became a major participant in the economy of the Belgian Congo. Throughout the 1920s, its affiliated banks took over many formerly independent local banks throughout Belgium. By end-1930, it represented 32.9 percent of the aggregate liabilities and 31.0 percent of the aggregate capital of the entire Belgian banking system, and was a similarly dominant investor in large mining, infrastructure, and industrial companies.[2]: 20  In the 1930s, the Société Générale in turn absorbed all its local Belgian banking affiliates with the only exception of the Banque d'Anvers,[2]: 21  then spun off the Générale de Banque as mandated by new Belgian legislation in 1935 while keeping controlling ownership of it. By end-1939, the Société Générale's share of the Belgian banking sector's total asset had further risen to 32.6 percent.[2]: 49 

Notable subsidiaries

The following companies were once majority owned by the Société Générale:

Governors

The following individuals were governors of the Société Générale:[3]: 239 

After the takeover by Suez in 1988, the position of Governor was terminated. The following individuals held the chief executive position (French: présidence du comité de direction):

  • Hervé de Carmoy (1988-1991)
  • Gérard Mestrallet (1991-1995)
  • Philippe Liotier (1995-1998)
  • Christine Morin-Postel (1998-2001)

Notes
  1. Xavier Mabille (1993). "La Société générale de Belgique : Eléments pour une histoire de la Banque mixte 1822-1934". Courrier hebdomadaire du CRISP (29–30). Retrieved 9 October 2021.
  2. Federal Reserve Board (June 1944), Army Service Forces Manual M361-5 / Civil Affairs Handbook Belgium Section 5: Money and Banking, Washington DC: U.S. Army Service Forces
  3. Ginette Kurgan-van Hentenryk (1996). Gouverner la Générale de Belgique : essai de biographie collective. Paris: De Boeck Université. ISBN 2-8041-2321-9.

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