Economy. Banking crisis: “There is no risk” of contagion in France, says the head of the French Banking Federation

On Saturday, the head of the French Banking Federation, Philippe Brassac, confirmed this The current global banking turmoil is hitting Credit Suisse in particular In Europe, it did not risk polluting France’s banking sector.

“There are no risks because there is no possible contagion mechanism between the events we are witnessing and French banks,” the banker, managing director of Credit Agricole, told France Inter. “French banks are very strong because of regulation” and “there is no mechanism, as might have been possible in the past, for publication”.

from Silicon Valley Bank (SVB) bankruptcy In the United States on March 10, despite the lifeline of the Swiss and American authorities, the banking sector of the stock market relapsed on Friday, pushing all markets into the red.

“No potential contamination”

As in the past week, concerns centered on Credit Suisse, one of the 30 global banks considered too big to fail, which could be taken over in whole or in part by the largest bank. Swiss, UBS, from this weekend, in order to stop the panic.

“Almost all French banks are subject to specific prudential rules” such as capital requirements, liquidity and interest rate risk management, said the representative of the French banks.

“With regard to US banks, there is no connection between the balance sheets,” and with regard to Credit Suisse, “there is no potential contamination.” Indeed, “since 2008 (…), the big banks no longer have the ability to link up with each other through cash loans as we did in the past,” explained Mr. Prasak.