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Press release  

 

French banks will make every effort necessary to bolster their capital and continue to finance the economy

On 2 November 2011, the chairmen of France's major banks participated in a meeting chaired by Prime Minister François Fillon at the Hotel Matignon. They reaffirmed their intention to implement the measures adopted by the European Council on 27 October 2011.

The banks confirmed that they were going to continue to strengthen their capital positions (reserves) in accordance with the new European Banking Authority requirements, in anticipation of their goal of implementing the new Basel III solvency standards starting in 2013.
The banks confirmed to the Prime Minister that they would do so through their own resources and without State intervention. To achieve this, the banks will work closely with the Governor of the Banque de France. Furthermore, they will continue to implement a moderate, reasonable distribution policy as they have done in the past by placing a very large portion of their profits in reserves.

French banks have been pioneers with regard to performance-linked pay and now strictly implement the European Directive of 2010.
This policy is reflected by restraint in performance-linked pay practices recognised by several international reports (FSB, IIF, etc.). These practices will continue for 2011 which, considering the market environment, will be down significantly compared with 2010.

French banks are mobilised to finance the economy, particularly small and medium-sized companies and industries. Currently, the pace of the increase in loans for these entities is over 5% per annum, considerably above the European average. The outlook for growth plays a key role in the demand for credit. French banks will make their best efforts to ensure that growth in credit continues to keep pace with the growth in GDP in the near future.

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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