Société Générale de Belgique: A History of Banking and Expansion

Société Générale de Belgique has a rich history that spans over a century. Founded in 1822, the bank's early years were marked by a focus on promoting trade and industry in Belgium.

The bank's expansion into the insurance sector began in 1830. This strategic move allowed Société Générale de Belgique to diversify its services and offer a wider range of financial solutions to its customers.

One of the bank's earliest successes was its involvement in the development of the Belgian railway system. By providing financing and management expertise, Société Générale de Belgique played a crucial role in the construction of the country's first railroads.

As the bank continued to grow, it expanded its operations into the international arena, opening branches in key cities across Europe and beyond. This marked a significant milestone in the bank's history, as it established itself as a major player in the global financial landscape.

Worth a look: 2008 Société Générale Trading Loss

The Société Générale de Belgique has a rich history that spans over a century. Founded in 1822, the bank played an active role in the placement of public debt and participated in the grand public works program of King Guillaume.

Related reading: Cambodian Public Bank

In the early 19th century, the bank invested in various industries, including coal mining and steel production, contributing to the Belgian industrial revolution. By 1835, the bank had created the Société de Commerce, specializing in advances on merchandise, aiming to make Antwerp a hub of international trade.

The bank's governor, de Meeûs, was a visionary who wanted the bank to finance the construction of the Paris-Brussels railway, a project that would also serve as a deterrent against King Guillaume's potential coup against the young Belgian kingdom.

The General Bank was created to play an active role in placing public debt, and it did just that from its inception. It participated in King William's grand public works program and showed interest in discounting certain commercial operations.

In the Hainaut region, the General Bank multiplied disguised loans to coal mines undergoing mechanization. This indirect financing was a significant contribution to the industrial revolution in Belgium, dating back to the 1820s.

A different take: Association of German Public Banks

The General Bank also created the Société de Commerce in 1835, at the request of King Léopold I of Belgium, to provide advances on merchandise. This move aimed to make Antwerp a hub of international commerce and facilitate the placement of Belgian products abroad.

The governor of the General Bank, Meeûs, was a visionary who wanted the bank to undertake the Paris-Brussels railway line project. This international railway would have allowed the French to intervene if the King of the Netherlands attempted a coup against the young Belgian kingdom.

Les Crises 1848 was a pivotal moment in European history. The revolutions that swept across Europe in 1848 were sparked by the February Revolution in France, which overthrew King Louis Philippe and established the Second Republic.

The Revolutions of 1848 were a wave of protests and uprisings that spread to Austria, Hungary, and other European countries. The Revolutions were largely driven by the desire for democratic reforms and an end to absolute monarchy.

Related reading: European Savings and Retail Banks Group

The Revolutions were marked by widespread violence and property damage, as protesters clashed with government forces. In Vienna, the protests turned violent, and the city was eventually occupied by Austrian troops.

The Revolutions ultimately failed to bring about lasting change, and many of the reforms were reversed in the years that followed. However, the Revolutions did pave the way for future democratic movements and the eventual decline of absolute monarchy in Europe.

History is a never-ending story, but it can also be a reminder that some events are so significant they become ingrained in our collective memory forever. The Battle of Waterloo, for instance, marked a pivotal moment in European history.

The Treaty of Versailles, signed in 1919, officially ended World War I and imposed harsh penalties on Germany, contributing to the rise of Nazi Germany and the outbreak of World War II. This treaty had far-reaching consequences.

The concept of "histoire événementielle" emphasizes the importance of major events in shaping our understanding of history. By examining these events, we can gain valuable insights into the past.

The French Revolution, which began in 1789, was a defining moment in modern history, marking the end of the absolute monarchy and the rise of the modern nation-state. The Reign of Terror that followed was a brutal period of violence and repression.

The fall of the Berlin Wall in 1989 symbolized the end of the Cold War and the beginning of a new era of global politics. It was a powerful reminder that history is constantly evolving.

In 1928, the Société générale absorbed the Banque d'Outremer, founded in 1899, and became the second-largest financial power in the country.

This acquisition reinforced the Générale's dominant role in the Belgian Congo economy. The Générale controlled the Union minière du Haut Katanga, the most important mining company in the region, and also owned the three main railways in the colony.

The Générale's influence extended to the production of copper, diamonds, radium, cement, and a significant portion of the country's gold. The company had successfully established three sister companies founded in 1906.

Here's an interesting read: Compagnie Générale De Banque

In 1928, the Générale inaugurated the Bukama to Port-Francqui railway, a major achievement that marked the beginning of a new era in transportation. The railway, also known as the Chemin de fer du Bas-Congo au Katanga or BCK, was a significant investment for the company.

The Générale was also expanding its reach into other sectors, including steel production. The company took significant stakes in various Belgian steel companies, aiming to create a cartel that would control the entire Belgian steel market.

Société Générale de Belgique had a diverse range of subsidiaries, including companies in electric construction, electronics, and arms manufacturing. This shows the breadth of their interests and investments.

Some notable subsidiaries include Ateliers de Constructions Electriques de Charleroi, which focused on electric construction and electronics, and FN Herstal, an arms manufacturer. These companies were an integral part of the Société Générale de Belgique's portfolio.

Here are some of the notable subsidiaries listed, grouped by category:

Arms Manufacturing:

Public Utilities:

Banking:

Shipping and Cargo:

Mining:

The Congo Free State, a personal property of King Leopold II, was a notorious example of foreign expansion and colonization. It was established in 1885 and lasted until 1908.

The Congo Free State was responsible for the deaths of millions of people, with some estimates ranging as high as 10 million. This was largely due to forced labor, mass killings, and the spread of diseases such as sleeping sickness and malaria.

King Leopold II's regime in the Congo Free State was marked by extreme brutality and exploitation, with locals being forced to work in harsh conditions for minimal pay. The regime also imposed a system of taxation that was impossible for many people to pay, leading to widespread poverty and famine.

The Congo Free State was eventually dissolved in 1908, after international pressure forced King Leopold II to relinquish control. The area was then administered by the Belgian government as the Belgian Congo.

Worth a look: Open Offshore Bank Account Online Free

Société Générale had a diverse portfolio of subsidiaries across various industries.

The company once owned a significant stake in Ateliers de Constructions Electriques de Charleroi, a leading manufacturer of electric construction and electronics.

Electrabel, another notable subsidiary, was a public utility company.

FN Herstal, a renowned arms manufacturer, was also under Société Générale's umbrella.

Générale de Banque, a bank, was a subsidiary of the company.

La Brugeoise et Nivelles, a Belgian rolling stock manufacturing company, was once a subsidiary of Société Générale.

Here's a list of some of the notable subsidiaries:

The Société générale played a significant role in the development of the railroad industry before 1914. They constructed several lines in Belgium for third parties in the 1850s and operated some for their own account.

In the railroad sector, the Société générale built several lines in Belgium in the 1850s for the account of others. They also operated some lines for their own account.

A different take: People's Own Savings Bank

Their subsidiary, the Société de chemins de fer de l'Est belge, participated in the creation of a transnational network called the Grand Central, which connected Anvers and the Charleroi basin to France and Germany. However, the competition between the state-owned network and the Grand Central hindered its success.

Here are some key facts about the Société générale's railroad operations:

The Société générale's coal operations were also significant before 1914. They concentrated the existing coal mines and imposed a common regime of financial control and technical management on all of them.

Société Générale de Belgique's governance and decline were closely tied. The bank's management was criticized for its handling of the 2008 financial crisis, with some executives accused of hiding losses and misleading investors.

In 2008, the bank's CEO, Daniel Bouton, announced a €5.5 billion loss, which was a significant blow to the company's reputation. This loss was largely due to the bank's exposure to the US subprime mortgage market.

The bank's governance structure was also called into question, with some critics arguing that it was too centralized and lacked adequate oversight.

During World War I, the Société générale was in a prosperous state, but the war effort required it to focus on three main areas: organizing moral resistance and food supplies for the country, preserving the Belgian industrial and economic apparatus, and preparing for a quick recovery after the war.

The bank's direction understood that the working-class population was threatened by famine due to lack of work, and if left unaided, the war could create a lasting divide between social classes.

A "Comité national de secours et d'alimentation" was formed by a group of Brussels personalities, including the governor of the Générale, Jean Jadot, and his director, Émile Francqui, to obtain permission from belligerents to import food into occupied Belgium.

The Comité national and the Générale played a crucial role in the social life of occupied Belgium, with Francqui's intentions for the post-war period being widely attributed to him.

The Générale attempted to keep essential industries operational, such as coal mines, but was unable to export manufactured goods to neutral countries due to belligerent opposition.

A different take: National Bank of Belgium

As a result, factories eventually came to a halt due to lack of raw materials, and some were even dismantled by the occupant to weaken the Belgian industry forever.

After the war, the Générale's direction aimed to relaunch the Belgian industry, envisioning the creation of a national "trust" that would concentrate activities in various sectors, including textiles, chemistry, and steel.

The bank sought to "émancipate" the country from energy, raw materials, financial, and technological dependence, aligning with the government's nationalist policies.

The government supported the Générale's expansion into new industrial sectors, such as fertilizers, carburants, and pharmaceuticals, and even assisted in the reacquisition of seized German enterprises.

The Générale played a key role in the economic conquest of Luxembourg, the privatization of the Congolese economy, and the expansion of Belgian banking abroad, all with the government's unconditional support.

Additional reading: Government Savings Bank (Thailand)

The Société générale de Belgique's demise began to take shape in the late 1980s, as the company struggled to adapt to changing market conditions.

The holding's finances were severely impacted by the speculation on its stock in 1987, which led to a surge in the number of shareholders and a subsequent decline in the company's profitability.

In an effort to regain its footing, the Société générale de Belgique attempted to rebrand itself as a more agile and forward-thinking company, but this only served to further erode its reputation and credibility.

The company's decision to sell off its non-core assets, including the Durrschmidt company in 1991, was a clear indication that the Société générale de Belgique was no longer the dominant player it once was.

As the company continued to struggle, it became increasingly clear that the separation between the bank and the industrial sector, implemented in 1934, had been a major contributing factor to its decline.

The Société générale de Belgique's inability to adapt to changing market conditions and its failure to innovate had ultimately led to its downfall, leaving behind a legacy of missed opportunities and unfulfilled potential.

The SGB's head office has been located in various buildings over the years, with the first being the former Brussels branch of Averbode Abbey, acquired in 1822.

This neoclassical structure, designed by Barnabé Guimard and built in 1779-1781, became known as the Hôtel Wellington after a sojourn by Arthur Wellesley in 1815.

The SGB expanded to adjacent structures over time, with a Beaux-Arts wing added in 1911-1913 to border the new Rue Ravenstein.

In 1904, the SGB acquired its first building uphill on the same block, facing the more prestigious Rue Royale, which it rebuilt in 1908.

The company bought further properties on the Rue Royale in 1922 and rebuilt them in 1928, with one room used by the Comité National de Secours et d'Alimentation during World War I.

The SGB spun off its Belgian bank in 1934, and the Banque de la Société Générale de Belgique kept the storied address, while the SGB relocated to the Rue Royale.

In 1966, the SGB and Société Générale de Banque decided to demolish and rebuild the entire block, including the Petit Béguinage, designed by Barnabé Guimard in the late 18th century.

The new structures fronting the Rue Royale were completed in 1972, displaying a long, symmetrical façade with a main entrance at 20, rue Royale.

The Société générale had 13 governors in total, starting with Ocker Repelaer van Driel in 1823.

Their tenure spanned over a century, with some serving for nearly two decades. For example, Comte Ferdinand de Meeûs held the position for 31 years, from 1830 to 1861.

Here's a list of the governors, in the order they served:

Gaston Blaise, who served from 1944 to 1950, was also a franc-maçon.

Société Générale de Belgique was a 'mixed banking' institution that focused on developing heavy industry, particularly railways, coalmining, metals mining, and power plants, from 1834 onwards.

It combined the activities of a deposit-taking bank with merchant banking business, investing in industry, which made it the first modern mixed bank. This innovative approach allowed it to achieve major expansion in various regions.

The bank's network saw rapid growth after being re-named Société Générale de Banque in 1965 and then Générale de Banque/Generale Bank in 1985.

Société Générale de Belgique's expansion took it to Europe, Russia, China, Latin America, and Africa through various subsidiaries and partnerships.