The French Banking Federation publishes “The banking industry in 2024”

The French Banking Federation publishes its annual report “The banking industry in 2024“, which highlights the actions and great challenges of the sector. Achieving the right balance between financial strength and competitiveness is essential to strengthen the European Union’s strategic autonomy and its ability to finance tomorrow’s growth and the future of Europe.

Growth and transition

Present at the heart of the economy and society, banks make their customers’ projects come to life, whether real-estate, innovation, investment, transition or transformation projects. In a year of economic slowdown and political and geopolitical uncertainty, they have continued to support their customers and offer financing solutions for sustainable economic growth. Banks have worked hard to find appropriate solutions for customers facing sectoral difficulties and crisis situations in certain regions of France. They are also strongly committed to financing major transitions, particularly the ecological transition. This is reflected in outstanding green and sustainability-linked loans, which have more than quadrupled in three years.

Inclusion and engagement

Drawing on one of the densest regional networks in Europe and close customer relationships enhanced by digital technology, the French banking model provides all customers with solutions to meet their needs. Banks offer a diversified and innovative range of services, particularly for payments, that simplify everyday uses while ensuring data protection and transaction security. In this respect, in 2024, the banking industry organised a new national fraud prevention campaign involving the public authorities. The consistency of this model is a genuine asset for banking and financial inclusion. Among other things, French banks offer services for moderate fees, solutions for the most vulnerable customers – often free of charge – financial education initiatives and measures to integrate people excluded from the labour market. The banking sector is a dynamic player in employment in France and its headcount has increased for the first time in several years. Committed and responsible, it has helped its 355,000 employees develop their skills and has launched a major national campaign to promote the diversity of professions and career opportunities in banking.

Competitiveness and investment

The banking sector has shown its solidity and resilience in weathering crises and rapid changes in the macroeconomic environment. Banks have also shown that they are part of the solution to the many economic challenges facing Europe, in terms of growth, competitiveness and innovation, as well as the risk of economic and technological decline highlighted by the Draghi report. The EU banking package pursues this logic of resilience but also raises the strategic question of the competitiveness of EU banks in relation to their counterparts in third countries. This issue is central to the banking profession’s priorities: achieving the right balance between financial strength and competitiveness is essential to strengthen the EU’s strategic autonomy and its ability to finance tomorrow’s growth and the future of Europe. In this respect, the proposals for the Savings and Investment Union must be followed by tangible ways of meeting the massive financing needs of the economy and the ecological and technological transitions. Ongoing reforms on bank resolution and deposit guarantees, data access and the retail investment strategy are key topics on the European agenda. Europe must not miss its objectives and generate undesirable impacts for the European banking sector and its ability to finance the future of the EU. Drawing on their universal, solid and inclusive banking model, French banks are determined to act in France and in Europe to finance the economy, businesses and citizens and prepare for the future.

In the contents of this 2024 annual report:

Influence

The French Banking Federation (FBF) is the professional organisation representing all French and foreign banks established in France. With its 101 territorial committees, its numerous partnerships and its involvement in multiple institutions, its influence extends throughout France, Europe and internationaly.

Growth

French banks support the sustainable growth of the economy through their priority activity of financing the projects and needs of their retail and business customers. They are resolutely committed to the fight against climate change and provide significant financing for the ecological transition.

Inclusion

The French model of local relationship banking has confirmed its usefulness in the daily lives of households and its effectiveness in terms of banking and financial inclusion. The banking sector is also a dynamic player in employment and integration into the workplace.

Competitiveness

To ensure Europe’s sovereignty, regulations must be clear and stable, and supervision must safeguard both the resilience of the banking sector and its competitiveness. The ability of banks to finance the European economy over the long term is at stake.