This French bank, which handles about R8.2 trillion in assets, had run a branch in South Africa since 2012 (offering services for businesses and investments) but has made the decision to pull out of the country.
This is because BNP Paribas say they now want to focus more on Europe and Asia, so it decided to pull back from Africa as a whole, not just SA.
French-owned banks in general often have stricter lending rules and a lower risk appetite. This means that they are not as eager as others to put their funds at risk lending to those who might not repay. Theya re also more sensitive to possible political and social risks.
On March 8, 2024, the South African Reserve Bank officially ended BNP Paribas’s banking license. But even though BNP Paribas will no longer operate as a bank in South Africa, it still owns RCS who are well known.