» Belgian banking system

Belgium has a long tradition of Finance and Banking. In fact, the first stock market in history was established in Antwerp in the 14th century.  Today, the Brussels Stock Exchange is one of the ten most significant stock exchanges in the world, and is a member of Euronext.

The large number of banking institutions has lead to a strong competitiveness within the sector. As a consequence, Standard & Poors’ recently considered the Belgian banking system as one of the most competitive and healthy in Europe (rating 2004: AA+).

Next to the National Bank, two main bodies are to be mentioned in the financing and banking world in Belgium, since they play a privileged and essential role for the good management of the Belgian banking system.

The Banking, Finance and Insurance Commission, operating since January 2004 is the single supervisory authority for the Belgian financial sector, covering a wide range of fields, such as: credit institutions, investment firms, exchange companies, collective savings products, public offers, financial markets, insurance companies, pension funds, etc.

The Belgian Bankers Association (ABB) is the central link between banks and public authorities, notably supervisory authorities. The main missions of the BBA are to represent the banking profession towards the public authorities; defend and promote the interests of the banking sector and finally research any issue concerning the members.

Belgians are recognized worldwide leaders in fund management, transaction processing, as well as in Trade Finance.

» Financial transaction processing

Brussels positions itself as a center of excellence for transaction processing. A strong expertise in this specialized field has been nurtured through the presence of the headquarters of world leaders like Swift, Euroclear and Banksys.
 
As an example, the Brussels branch of The Bank of New York (with a staff in excess of 800) is the Worldwide Processing Center for the group's International Custody Services and handles the global processing and the back-office function for all securities transactions generated by BNY customers worldwide.

Launched in February 2004 by major financial institutions based in Brussels and the Solvay Business School, the TransConstellation Academy offers a certificate programme in 'Financial Transaction Services'.

“We strongly believe that TransConstellation Academy will quickly demonstrate its unique value, not only in sharing knowledge and building specialist skills, but in contributing to Belgium's leadership in the transaction processing business" says Ignace R. Combes, TransConstellation Chairman.

» Trade finance

Given the fact that the Belgian economy has traditionally always been dependant on international trade, Belgian banks have developed a reputation for their expertise in structured trade finance. According to a recent survey by Euromoney, close to 80% of all complex trade finance deals are either initiated by  Belgian bank, or include a Belgian bank as an active counterparty. While retaining high credit standards and exceeding Basle accords on capital allocations, Belgian financial institutions are not averse to taking risk, even with sovereign counterparties whose credit standing is less than investment grade. Chances are that Belgians are involved at some point if there is any transaction to finance a cocoa shipment from the Ivory Coast to Switzerland or a crude oil deal between Russia and Argentina.

» Investment management

With one of the highest savings rates in the world, the Belgians invest in economies around the world. Close to 4% of the US sovereign debt is held by Belgian investors, while 1.5% of the total market capitilisation of US equities is in Belgian hands. In fact, there are more Belgians per capita that are “stakeholders”, by a factor or five to one, in the US economy than Americans. Investment management is big business in Belgium, and fund managers have a complete understanding of the risks in investing in a truly global economy.



» Statistics

Number of banks in Belgium:	120
National distribution network :	10,200 points of sale (2002)
Five major Belgian banks:	Fortis, Dexia, KBC, ING and AXA
Average profitability of the capital of banks under Belgian law :	7,69 % (2002)
Contribution made by the Belgian banking industry to the Belgian GDP :	+/- 5.5 % (1999)
Number of Belgian banks in the group of the first 100 international banks:	3
Total running credit amount :	390 billion EUR, i.e. 1.6 x the Belgian GDP
Assets under management:	$1.1 trillion
Employment in the banking industry:	75,000 employees (4 % of the Belgian working population), 124,024 employed globally by Belgian banks.

Source: The Belgian Bankers Association, July 2004