European way to sovereign funds: a aomparison among CDP, KfW and CDC

Even if founded in different historical periods, Cassa Depositi e Prestiti (hereinafter “CDP”), the German Kreditanstalt fuer Wiederaufbau (hereinafter “KfW”) and the French Caisse del Dépôts et Consignations (hereinafter “CDC”) share their prime mission to serve the national “general interest” supporting and promoting the economic development of their respective countries. All three institutions, in fact, have been established following periods of war and crises with an overall public interest mission. This chapter will have a look at all the angles deemed relevant in order to contextualize the three financial institutions within the current market trends. In particular, a broad analysis of their institutional objectives is provided in the second part, followed by an in-depth description of their ownership and governance structure. Each institution’s functioning model represents the core of the chapter, delving into their portfolio of activities and sources of funding. Part five provides the reader with an examination of CDP, KfW and CDC’s performance related to earnings, capital, asset quality, leverage and cost-efficiency using a vast array of accounting ratios compared over time. Part six is a precise strength and weakness analysis. Part seven concludes.