France: Financial System Stability Assessment

by Sabrina I. Pacifici on December 23, 2012

IMF – France: Financial System Stability Assessment, December 7, 2012

  • “France’s financial system has shown resilience to severe market pressures but faces challenges. While its structure has contributed to solid profit generation, the crisis exposed the risks posed by the banks’ size, complexity, and dependence on wholesale funding. The larger banks have been actively restructuring their balance sheets—moving to more stable sources of funding; reducing their cross-border presence; and building up capital. They remain, however, vulnerable to sustained disruptions in funding markets and reduced profitability, which would cause delays in meeting capital-raising plans.”
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