Credit institution
A legal entity that habitually carries out banking operations, taking deposits, granting credit, under ACPR authorization: banks, mutual or cooperative banks, etc. Unlike the everyday term 'lending institution', this is the precise regulated status that grants the right to lend.
Key points
- Legal entity authorised by the ACPR to habitually carry out banking operations.
- Covers commercial banks, mutual banks and cooperative banks.
- Only a credit institution may habitually take deposits and grant credit.
- Distinct from a payment institution or electronic money institution.
Frequently asked questions
What is the difference between a 'credit institution' and a 'lending institution'?
The 'lending institution' is a common term used in contracts and communications to simply identify the bank granting the loan in a specific file. The 'credit institution' is the precise regulatory qualification, defined by the French monetary and financial code, that designates entities authorised to carry out banking operations. A credit institution is always a potential lending institution, but the term 'lending institution' can sometimes apply more broadly to other authorised entities.
Why does a broker need to understand this concept to secure banking partnerships?
Working with an authorised credit institution guarantees that the banking partner is subject to ACPR prudential supervision and has the legal capacity to grant mortgage loans. A broker working with an unauthorised entity would face significant legal risks, including complicity in illegal activity. Checking a banking partner's status on the ACPR register (REGAFI) is a basic precaution.
Can payment institutions grant mortgage loans?
No. Payment institutions are authorised to provide payment services, transfers, direct debits, transaction acquiring, but not to grant mortgage loans. That activity is strictly reserved for credit institutions and, in some cases, specialised credit institutions. Mortgage fintechs that offer loans in France must therefore either obtain a credit institution licence or operate in partnership with a licensed credit institution.
In practice
A broker receives a partnership proposal from an online platform presenting itself as a 'digital lender'. Before submitting any client file, he checks the platform's authorisation number on REGAFI: finding no registration as a credit institution, he declines the partnership and thereby protects his clients from illegal financing.
Official sources
- Article L511-1 (credit institutions) · Légifrance — CMF
- The banking-operations intermediary (IOBSP) · ABE Info Service (Banque de France / ACPR)
- Single register of intermediaries · ORIAS