France, a founding member of the European Union located in Western Europe, is one of the modern economies in the world and the second largest economy in Europe.
Economy of France is diversified across many sectors: nuclear power, metallurgy, electronics, telecommunications, machinery, chemicals, aircraft, automobiles; textiles, food processing; and tourism.
Financial services and banking are important part of the economy. The major French banks: BNP Paribas, Credit Agricole and Societe Generale are among the largest banks in the world.
|Population (2016)||66 661 621 (0.00%)|
|EU Status||member since 1952|
|National Currency||EUR (Euro) since 1 January 1999|
|Nominal GDP (2015)||2 183.6 bln EUR (+0.02%)|
|Nominal GDP per Capita (2015)||32 800 EUR (+0.02%)|
|Real GDP Growth (2015)||1.2 % (2014: 0.4 %)|
|CPI, MoM (Sep 2016)||-0.2 % (Aug 2016: 0.3 %)|
|CPI, YoY (Sep 2016)||0.5 % (Aug 2016: 0.4 %)|
|CPI, Year Average (2015)||0.1 % (2014: 0.6 %)|
|Unemployment Rate (2015)||10.4 % (2014: 10.2 %)|
|Government Bond Yield (Sep 2016)||0.18 % (Aug 2016: 0.15 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||AA||very high credit quality, outlook stable|
|Moody's||Aa2||high grade, outlook stable|
|Withholding Tax||0.0 - 30.0%|
|Double Taxation Agreements||113 signed agreements|
|Exchange on Request||29 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 14 November 2013, Model 1|
|Financial Market Development||4.6 (max 7.0)||rank: 31st out of 138 countries|
|Banks' Soundness||5.7 (max 7.0)||rank: 32nd out of 138 countries|
|Banking Industry Country Risk||2||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Euro)||Aaa||prime|
|Deposit Rates (Aug 2016, EUR)||0.82 % (Jul 2016: 1.31 %)|
|Banking Sector Structure|
|Number of Banks||569|
|Recent Changes (2015)||new banks: 6, closed banks: 22|
|Consolidated Assets (2015)||6 940.13 bln EUR (-3.44%)|
|BNP Paribas||Societe Generale|
|Credit Agricole||HSBC France|
|List of Banks in France|
France joined the Euro Area on 1 January 1999.
According to Eurostat, nominal GDP of France in 2015 was 2 183.6 bln EUR.
France underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.3% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 1.2% which was below the Euro Area average (1.6%) and below the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in France was 32 800 EUR.
France has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 6.2% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in France in 2015 expressed as annual percentages of average consumer prices was 0.1% which was above the Euro Area average (0.0%) and above the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in France are shown in Table 1.
|Natural person, resident||21.0||24.0|
|Natural person, non-resident||30.0||0.0|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
France signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between France and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
France signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between France and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
France signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
France has FATCA agreement with the U.S. in effect since 14 November 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in France are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: French financial accounts hold in U.S. financial institutions will be reported to French authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in France is scored 4.6 out of maximum 7.0 and ranked 31st out of 138 analysed economies. Soundness of banks is scored 5.7 bringing France into the 32nd place, trustworthiness and confidence of financial market is scored 4.7 (40th place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
France is included into group '2' with economic risk scored '2' and industry risk scored '2'.
|Economic resilience||very low|
|Credit risk in economy||low|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in France are summarised in Table 3.
|Scheme Participants||all credit institutions operating in France, branches of non-EEA banks, branches of French banks abroad|
|Scheme Exemptions||branches of EEA-banks (covered by their home countries)|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||all deposit accounts (current accounts, demand accounts, passbook accounts, term accounts, home savings accounts, home savings schemes, etc.)|
|Covered Currencies||all currencies|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 3. Deposit guarantee scheme in France.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for France is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Compare Bank Deposits in France
Currently there are 569 credit institutions operating in France.
Recent structural changes (2013 - 2015) of the banking sector of France are summarised in Table 4.
|Number of Opened Banks||8||8||6|
|Number of Closed Banks||11||21||22|
Table 4. Recent structural changes in the banking sector of France.
All the credit institutions operating in France can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||88|
The list of the most recently opened banks in France is provided in Table 6.
|Crédit Immobilier de France Développement (new)||August 2015|
|CHINA CONSTRUCTION BANK (EUROPE) S.A (new)||July 2015|
|Australia and New Zealand banking group limited (new)||April 2015|
|Lombard Odier (Europe) S.A. (new)||March 2015|
|AGENCE FRANCE LOCALE (new)||January 2015|
|Mirabaud et Cie (Europe) SA (new)||January 2015|
|GE Capital bank limited (new)||November 2014|
|The Export-Import Bank of China (new)||November 2014|
|Toyota material handling Europe rental AB (new)||November 2014|
|ORWELL UNION PARTNERS LLP (new)||October 2014|
Table 6. The most recently opened banks in France.
There are 88 branches of foreign banks from 23 different countries in France. Table 7 shows 10 countries having the biggest number of branches in France.
|Country of Origin||Number of Branches|
|Iran, Islamic Republic of||4|