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Press release  

 

French banks are ready to actively participate in the implementation of a lasting solution for the euro zone crisis

French banks welcomed the decisions taken by the European heads of state and government on a solution to stem the euro zone crisis. They very much hope that this global political agreement, reflecting the willingness of the various states to maintain the euro zone's coherence and solidarity through substantial national programmes to control their public finances, will help to restore confidence.


The extent of the voluntary participation being asked of private creditors as part of the rescue plan for Greece is exceptional. French banks, for their part, have been providing support since the outset and are ready to respond to the European Council's proposal of a "voluntary bond exchange with a nominal discount of 50% on the national Greek debt held". As they did last July, the banks will put forward their participation in the announced plan to their governing bodies. The overall exposure of the balance sheets of France's four main banks stands at around 0.12%. They are therefore well positioned to meet this requirement.


The European Council's statement also includes a shoring up of the capital of European banks much more quickly than had initially been anticipated by the regulators themselves. Solvency ratios must be brought to 9% before 30 June 2012, after factoring in their portfolios of euro zone sovereign debt at market value and boosting capital requirements for market activities (Basel 2.5). Based on the new test implemented by the European Banking Authority (EBA), the total additional capital that French banks will need in order to comply with this temporary additional buffer will be EUR8.8 billion.


French banks are confident they can meet these new European requirements on their own without looking for public financing, and at the same time fulfil their mission of financing the French economy.

CONTACT

Colette Cova
email : ccova@fbf.fr
Tel : 01 48 00 50 07

Céline Thomas
email : cthomas@fbf.fr
Tel : 01 48 00 50 70

 
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