The creation of the regional banks
A new law, passed on 17 March 1899 and promoted by Albert Viger, organised the new financial structure. It led to the creation of the regional banks, which brought together the local mutual banks within their region, promoted mutualism in their regions and, most importantly, distributed government advances among the local banks according to their needs.
The distribution committee
At the higher level, a distribution committee comprising members of parliament and representatives of the regional banks was set up within the Ministry of Agriculture to distribute the advances.
The principle of mutualism was reflected in the institution’s governance.
The farmers who were mutual shareholders of the local mutual banks elected their directors and chairman, who represented the local banks with respect to their regional banks, which were in turn members of the distribution committee. As explained by Senator Victor Lourties, this structure made it possible to organise Crédit Agricole “from the bottom up”, allowing it to be as close as possible to farmers and local areas.
This decade of organisation reflects what will characterise Crédit Agricole throughout its history: a mutualist base, a cooperative structure and an important place for local initiatives, all facilitated by national guidelines.