The mystery of French banks: champions of Europe but unable to be a growth engine in the ...

The mystery of French banks: champions of Europe but unable to be a growth engine in the ...

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What good are well-structured banks for if companies do not take advantage of them to grow and work? "data-reactid =" 22 ">What good are well-structured banks for if companies do not take advantage of them to grow and work?

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The European Banking Authority issued this week- end, the results of the stress tests carried out with 42 European banking institutions on the basis of their balance sheets at the end of 2017. These tests measure the impact of a fall in economic activity of 2.7% of European GDP between 2018 and 2020, given an unemployment rate that increases by 3.3% and risks. Brexit, a collapse in real estate prices or an increase in interest rates."data-reactid =" 23 "> The European Banking Authority published this weekend the results of the stress tests carried out with 42 European banking institutions on the basis of their balance sheets at the end of 2017. These tests measure the impact of a fall in economic activity of 2.7% of European GDP between 2018 and 2020, given an unemployment rate that increases by 3.3% and risks. Brexit, a collapse in real estate prices or an increase in interest rates.

In light of the slowing prospects and all the possible consequences, the Autorité de Sûreté wanted to know if the banks were armed to withstand such violent shocks.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "These stress tests are a bit like the crash tests that cars undergo. They are launched at full speed against a wall and measured impact resistance and probable damage. "data-reactid =" 25 ">These stress tests are a bit like the crash tests that cars undergo. They are launched at full speed against a wall and measured impact resistance and probable damage.

In this case, and for the banks, the question is whether they have enough capital to absorb shocks.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "So, ten years after the crisis, the results are quite reassuring. Overall, the measures taken to strengthen solvency ratios and liquidity ratios have solidified the fundamentals. It must be said that in the general panic that followed Lehman Brothers, European governments multiplied the demands that resulted in the Basel 3 agreements in particular. "data-reactid =" 28 ">So, ten years after the crisis, the results are quite reassuring. Overall, the measures taken to strengthen solvency ratios and liquidity ratios have solidified the fundamentals. It must be said that in the general panic that followed Lehman Brothers, European governments multiplied the demands that resulted in the Basel 3 agreements in particular.

The test carried out on the balance sheet 2017 is therefore overall better than that of 2016. Which means that once they leave the risk zone, the banks have continued to increase their solvency ratios, a figure that measures the weight of equity compared to the credits distributed.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The results (…) read more on Atlantico
"data-reactid =" 30 "> The results (…) read more on Atlantico

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "
That's why you see ads for French banks everywhere in this season
Pact law and savings reform: Bruno Le Maire referee for the benefit of banks and at the expense of insurers
Banks accused of getting rich on the backs of the most fragile
Towards a new form of financial crisis from the banks?

"data-reactid =" 31 ">
That's why you see ads for French banks everywhere in this season
Pact law and savings reform: Bruno Le Maire referee for the benefit of banks and at the expense of insurers
Banks accused of getting rich on the backs of the most fragile
Towards a new form of financial crisis from the banks?

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