“There is no risk because there is no possible contagion mechanism between the events we are seeing and the French banks, and therefore there is clearly no risk of a banking crisis in France.” » Philippe Brasac, president of the French banking federation, assured on Saturday (March 18) that the ongoing banking turmoil around the world, which is troubling Credit Suisse, especially in Europe, is not likely to contaminate the banking sector in France.
“French banks are very solid because of regulations” and “There is no mechanism for dissemination as it might have been in the past”The banker, managing director of Crédit Agricole told France Inter.
“There is clearly no risk of a banking crisis in France,” says @PhilippeBrassac @FBFFrance @CreditAgricole.… https://t.co/81k2XPcjns
After the bankruptcy of Silicon Valley Bank (SVB) in the United States on March 10, and despite the rescue plans of the Swiss and American authorities, the banking sector suffered a relapse in the stock market on Friday, and all markets went into the red.
Concerns surrounding Credit Suisse
As of last week, concerns have focused on Credit Suisse, one of 30 banks globally considered too big to fail and which could be taken over in whole or in part by the biggest bank. Swiss, UBS, as of this weekend, aim to end the panic.
“Almost all French banks are subject to specific prudential rules”Such as capital requirements, liquidity, interest rate risk management, listed the representative of French banks.
“There is no correlation between balance sheets for US banks”And as for Credit Suisse, “There is no possible contamination”. in fact “Since 2008 (…)Big banks no longer have the ability to connect with each other through cash lending as we did in the past.Mr. Brassak explained.
Source: Le Monde
Ashley Fitzgerald is a financial whiz and a writer at Run Down Bulletin. With a passion for all things economy, she provides insightful and thought-provoking coverage of the latest economic trends and events.