French Monetary and Financial Code
In forceCaisses de crédit municipaux are established by decree countersigned by the Minister for the Economy and the Minister for Local Authorities, at the request of the municipal council or councils concerned.
The funds are managed by a director, under the supervision of a guidance and supervisory board.
The director is appointed by the mayor of the municipality in which the caisse has its head office, on the advice of the guidance and supervisory board.
The guidance and supervisory board is made up of the mayor of the municipality in which the institution has its registered office, who is the ex officio chairman, and, in equal numbers, members elected from among its members by the municipal council of the municipality in which the institution has its registered office and members appointed by the mayor of the municipality in which the institution has its registered office for their expertise in the financial or banking field.
The guidance and supervisory board defines the general guidelines and organisational rules of the caisse de crédit municipal and exercises ongoing control over the management of the institution by the director.
A decree of the Conseil d'Etat shall determine the other areas of competence of the Conseil d'orientation et de surveillance and the categories of transactions, other than day-to-day management transactions, the conclusion of which is subject to its prior authorisation.
The Guidance and Supervisory Board ensures compliance with the general regulations of the banking profession and the legislative, regulatory and European provisions directly applicable to municipal credit banks. To this end, it carries out any checks and controls it deems appropriate and obtains any documents it deems useful for the performance of its duties.
The municipality in which the caisse has its registered office is considered to be the sole shareholder or member of the institution for the purposes of applying the provisions of article L. 511-42.
The annual budget of the municipal credit union, as well as supplementary budgets and the financial accounts, once adopted by the guidance and supervisory board, are sent for information to the municipal council of the municipality in which the credit union has its registered office.
An annual report on the activities and financial situation of the municipal credit union is presented by the mayor to the municipal council at the meeting preceding that at which the municipal budget is to be adopted.
The mayor informs the municipal council in advance of any plans to modify the scope of the municipal credit union's banking activities, as well as any disposal of its assets, the list of which is set by decree according to threshold or size criteria, and gives the reasons for the decision.
