“There is clearly no risk of a banking crisis in France”, assures the president of the French Banking Federation
“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. » The president of the French Banking Federation, Philippe Brassac, assured on Saturday March 18 that the current banking turmoil in the world, which is hitting Credit Suisse in particular in Europe, was not likely to contaminate the banking sector in France.
“French banks are very solid due to regulation” And “there is no mechanism, as there could be in the past, of propagation”said the banker, managing director of Crédit Agricole, on France Inter.
“There is clearly no risk of a banking crisis in France,” says @PhilippeBrassac @FBFFrance @CreditAgricole.… https://t.co/81k2XPcjns
Since 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 relapsed on the stock market on Friday, dragging all the markets into the red.
Concerns around Credit Suisse
As in the past week, concerns focus 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, with the aim of ending 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.
“With respect to American banks, there is no link between the balance sheets”and regarding Credit Suisse, “there is no possible contamination”. In effect, ” since 2008 (…)the big banks no longer have the ability to link with each other through monetary lending, as we did in the past”explained Mr. Brassac.