“It is clear that there is no risk of a banking crisis in France,” the President of the French Banking Federation assures.
“There is no risk because there is no potential contagion mechanism between the events we are witnessing and French banks, and therefore there is clearly no risk of a banking crisis in France.” The President of the French Banking Federation, Philippe Brassac, stressed on Saturday, March 18, that the current banking turmoil in the world, which is hitting Credit Suisse in particular in Europe, is unlikely to pollute the banking sector in France.
‘French banks are very strong because of regulation’ And “There is no mechanism, as there might have been in the past, for reproduction.”The banker, Managing Director of Credit Agricole said, In France Inter.
“There is clearly no risk of a banking crisis in France,” says PhilippeBrassacFBFFrance @ CreditAgricole… https://t.co/81k2XPcjns
Since the bankruptcy of the Silicon Valley Bank (SVB) in the United States on March 10, and despite the bailout plans of the Swiss and American authorities, the banking sector relapsed into the stock market on Friday, pulling all markets into the red.
Concerns about Credit Suisse
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, with the aim of ending the panic.
Almost all French banks are subject to specific prudential rules.such as capital requirements, liquidity and interest rate risk management, representative list of French banks.
As far as US banks are concerned, there is no connection between balance sheets.and on Credit Suisse, “No potential contamination”. In reality, since 2008 (…)The big banks no longer have the ability to link up with each other through cash lending, as we did in the past.”Mr. Brassack explained.