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Detroit Urban Development Plan To Be Replicated By JP Morgan In Poorer Areas Of Paris


11/05/2018


Detroit Urban Development Plan To Be Replicated By JP Morgan In Poorer Areas Of Paris
The largest US bank by assets, JP Morgan Chase, will invest social work in France. The lender has announced that it will replicate an urban economic development strategy that it had initiated in Detroit, US, four years ago, would be replicated in the impoverished and underdeveloped areas around Paris. This will also be the first such foreign project for the bank.
 
JP Morgan said that under the development program, residents of the chosen area near Paris would be imparted education and knowledge on acquisition and enhancement of job skills and the bank will also aid in the expansion of small businesses in Seine-Saint-Denis and some other places where there is a higher rate of unemployment. The bank announced the investment of $30 million over a period of five years.
 
Seine-Saint-Denis has the highest poverty and crime rates in France and is located north of Paris. An extremely congested highway circling the city is the only separator of the area, which has a dominance of large social housing projects, from the otherwise wealthy areas of Paris. About a decade ago, a very ferocious riot had started from this locality which had engulfed suburbs all over France.
 
The bank also said that after the announcement of the project, the bank’s chief executive Jamie Dimon also has plans to visit the city this week. More and more of the day-to-day operations of the New York based bank is being designated to his subordinates by Dimon while he has got himself busy with promotion of the banks policies and creating public-private partnerships which could result in economic growth.
 
The United States, the market from where JP Morgan earns about 80 per cent of its revenues have so far been the focus of the advocacy work of Dimon.
 
JP Morgan’s Paris project is a part of its project called "Advancing Cities" which the bank has undertaken in two US cities which account for the largest market share of the deposits of the bank – Detroit and Chicago – where the bank has invested $150m $40m respectively.
 
The bank is eyeing expansion of its overseas business and the focus of the company is on commercial lending to mid-sized companies. 
 
The global employee strength of the bank is about 255000 while it has about 200 employees in France.
 
Investment banking, money management and capital markets are the three major banking services that are provided by JP Morgan in France. The bank has not products for the low-income individuals or small businesses. But the bank feels that the new effort in France could benefit those two sections the fastest.  
 
The skills that are needed by the bank's business clients would be provided under the program, said Peter Scher, JP Morgan head of corporate responsibility. He also said that some of the programs centers would be located in office towers sloe of places where the rate of unemployment is as high as 35 per cent.
 
"That is a good bet for the economy and it is a good bet for our firm," said Scher.
 
(Source:www.thenational.ar)


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