Societe
Generale was founded in 1864 by a group of industrialists, bankers,
businessmen, and heads of railway companies, after an authorization
decree was signed by Napoleon III. By 1870, it had around 47 branches
in Paris and other provinces in France. In 1871, the bank‘s
permanent office was set up in London and the bank went public.
Between 1871 and 1893, several banking establishments in France
failed after which Societe Generale‘s pace of growth slowed down.
As of 1889, it had 149 branches. In 1894, Societe Generale began
providing short-term credit to traders and industrialists and also
issuing private debenture loans. The bank‘s activities expanded to
Russia at that time.
By
1920, Societe Generale had emerged as a leading bank in France. In
1928, a subsidiary CALIF that specialized in medium-term credit was
created. The 1930s and the early 1940s were a difficult period for
the bank. The operations in France and Europe were adversely affected
by World War II, due to which Societe Generale started scouting for
opportunities in other countries and moved to the US and Africa.
In
1945, Societe Generale was nationalized. Between 1945 and 1958,
France was experiencing economic recovery. It was also a period of
radical changes in the banking industry and the industrial demand for
credit was high. At that time, Societe Generale expanded into Italy
and Mexico. During the 1960s, Societe Generale expanded rapidly in
France and also internationally. With the changes in the banking
sector like the decreasing difference between traditional and
investment banking, advent of the home mortgage market, leasing, etc,
Societe Generale launched services like leasing and opened new
subsidiaries especially for credit.
