Europe's news in English

COPY LINK

RUSSIA

French bank confirms commitment to Russia

Société Générale confirmed on Thursday the French bank's commitment to the Russian market and said any Western sanctions against Moscow over Ukraine would have a limited impact.

Published: 14 March 2014 08:05 CET

French bank confirms commitment to Russia

Société Generale confirms commitment to Russia. Photo: Patrick Kovarick/AFP

The chief executive of Société Générale confirmed Thursday the French bank's commitment to the Russian market, where it owns a controlling stake in a top lender, and voiced confidence any Western sanctions against Moscow over Ukraine would be limited.

"My strategic vision is that in the long term the ties between Europe and Russia will become stronger," Frederic Oudea said on BFM Business.

Russia "is very important as a market and will remain a major element for development for Europe. We are making a bet on the long term and engagement in Russia is confirmed," he added.

Société Générale owns Rosbank, the nation's number two lender by number of branches, and has made Russia a key element of its international development.

He said the bank's exposure to the country should be kept in perspective, as it and the neighbouring area represents less than five percent of Société Générale's total liabilities.

The United States and Europe are making more noises about tougher sanctions on Russia if Moscow moves to annex Crimea.

Russian troops now de facto control the strategic Black Sea peninsula and will hold a hastily-arranged referendum this weekend on joining Russia.

However Oudea said "I think sanctions will be limited", estimating that Europe has as much to lose in case of reprisals by Moscow, citing the example of Germany's dependence on Russian natural gas.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

Card over cash? Why Germany is seeing a new payment preference

Germany has long been a very cash-based country, occasionally to the dismay of frustrated tourists at the Döner shop.

A few German phrases express the people’s love of physical money. There’s ‘only cash is true’ – Nur Bares ist Wahres. Or Bargeld lacht, literally meaning cash laughs, but used to imply that cash is what’s wanted, similar to ‘cash is king’ in English.

But the classic German preference for cash appears to be evolving, as the use of girocards is growing, even for small transactions.

How are girocards being used?

Girocard, an ATM and debit card service offered by German Banks, was designed to allow customers to use virtually all German ATMs and, increasingly, to make purchases at businesses.

READ ALSO: Ask an expert – Why is cash still so popular in Germany, and is it changing?

Last year, consumers in Germany used their Girocard more often than ever before for cashless payments. A total of €7.48 billion payment transactions with the plastic card were counted – 11.5 percent more than in the previous record year 2022, according to figures published by the Frankfurt-based institution Euro Card Systems.

Whether at the bakery, petrol station or supermarket, customers are increasingly pulling out their cards at the checkout, even for smaller amounts. As a result, the average amount paid with the Girocard fell from €42.34 to €40.69 within a year.

The rise of card payments in Germany

Contactless payment, which is possible with girocards and credit cards that have an NFC chip, got a boost during the Covid pandemic, as retailers promoted it for hygiene reasons.

But the use of card payments has continued to grow in Germany since then, boosted partly by the increasing use of girocards.

Promoting the use of girocards, some German banks have expanded their cards’ functions: Sparkassen, Volksbanken, or Raiffeisenbanken offer girocards for the digital wallet, for example.

Banks want to continue upgrading the payment card with further applications. For example, a project is being tested which would add an age verification function to girocards that would be useful when a customer is buying cigarettes.

On the retail side, it’s clear why the Girocard is preferred to other debit options.

“We see that debit cards from international providers cost up to four times more,” Ulrich Binnebößel, Head of the Payment Systems & Logistics Department at the German Retail Association (HDE) told DPA.

What’s the difference between the Girocard and other debit?

The Girocard is a strictly German phenomenon. It can be seen as the latest iteration of the EC card, which was created to consolidate payment systems following the unification of former East and West Germany.

In 1991 different debit card systems, including Eurocheque guarantee cards from former West Germany and Geldkarte ATMs from former East Germany, were unified into Eurocheque cards.

Then in 2001, the Eurocheque system was disbanded, but German banks continued to use the EC logo for “electronic cash’” cards, or EC cards. In 2007, the German Banking Industry Committee introduced Girocard as a common name for electronic cash and the German ATM network.

Girocards are only issued and accepted in Germany, so if you want to get one of your own, you’ll have to join a German bank, and shell out those notorious German banking fees.

READ ALSO: Why it’s almost impossible to find a free bank account in Germany

Alternatively, you can get by with internationally accepted debit cards provided by a bank in your home country, or otherwise by joining an app-based European banking service like N26.

But be warned, without the Girocard in hand, at some smaller retailers you may be told, “Leider nur Bargeld oder EC-Karte.”

With reporting by DPA

Url copied to clipboard!