France: Financial System Stability Assessment

The French financial system has proven resilient to the shocks of the last five years but faces headwinds from domestic and external policy uncertainty and high fiscal consolidation needs. Bank-insurance conglomerates that include four Global Systemically Important Banks dominate the financial landscape, and financial markets have become increasingly complex in the post-Brexit environment. Banks’ capital and liquidity buffers remain high, but with low profitability versus peers.