Dexia is a European banking group managed in orderly resolution since the Sovereign debt crisis, end 2011. Dexia’s orderly resolution plan, approved by the European Commission in December 2012, aims to avoid the Group’s bankruptcy and liquidation which would, given the Group’s size, be liable to destabilise the entire European banking sector. Instead, the plan provides in a controlled run-off of the Group’s balance sheet, by carrying the remaining assets until maturity without any new production and this, until complete extinction of the balance sheet.
In order to successfully complete this orderly resolution, the Group needed government support. As such, in December 2012, the Belgian and French States subscribed to a capital increase of Dexia SA for an amount of EUR 5.5 billion. Together with the Luxembourg State, they also provided Dexia Crédit Local, the main operational entity and issuer of the Group, with an EUR 85 billion funding guarantee, so that the Group can find the necessary funding on the financial markets to finance its remaining assets over the run-off period.
The primary mission of the Group is to ensure a controlled run-off of its balance sheet in order to preserve financial stability and to minimize the cost for the States as owners of Dexia and as guarantors of part of its liabilities.
The Group’s parent company, Dexia SA, is a public limited company and a financial company governed by Belgian law, supervised by the European Central Bank with the support of the National Bank of Belgium. Following the capital increase end 2012, the Group is 94.4% owned by the Belgian and French States (Belgium: 50.02%, France: 44.40%).
Dexia Crédit Local is the Group’s main operational entity and issuer. Disposing of a banking license, this entity based in France, falls under the supervision of the European Central Bank, with the support French banking supervisory authority (ACPR).
Click here to learn more about the Dexia Group.