According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in France is scored 4.5 out of maximum 7.0 and ranked 33rd out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.7 (40th place).
Chart 1. Financial Market Development in France. Source: WEF.
Soundness of banks is scored 5.6 bringing France into the 31st place.
Chart 2. Soundness of Banks in France. Source: WEF.
Banks in France are mainly focused on the following areas:
Currently there are 544 credit institutions operating in France.
In 2018 consolidated banking assets in France were 7,223.61 bln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in France.
Recent structural changes (2013 - 2018) of the banking sector of France are summarised in Table 1.
|Number of Opened Banks||8||8||6||3||3||3|
|Number of Closed Banks||11||19||21||15||19||7|
Table 1. Recent structural changes in the banking sector of France.
The list of the most recently opened banks in France is provided in Table 2.
|Adyen NV (new)||November 2018|
|MMB SCF (new)||October 2018|
|Ma French Bank (new)||May 2018|
|Banque Martin - Maurel (new)||October 2017|
|NATIONAL WESTMINSTER BANK PLC. (closed)||July 2017|
|Habibsons bank Ltd (new)||May 2017|
|BANK OF COMMUNICATIONS (LUXEMBOURG) S.A. (new)||November 2016|
|Berlin Hyp AG (new)||April 2016|
|Santander Consumer Banque (new)||January 2016|
|Crédit Immobilier de France Développement (new)||August 2015|
Table 2. The most recently opened banks in France.
All the credit institutions operating in France can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||92|
|Municipal credit banks||18|
|Specialized credit institutions||185|
There are 91 branches of foreign banks from 24 different countries in France. Table 4 shows 10 countries having the biggest number of branches in France.
|Country of Origin||Number of Branches|
|Iran, Islamic Republic of||4|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
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 5.
Table 5. Deposit guarantee scheme in France.
EEA stands for European Economic Area and consists of all EU member states plus Liechtenstein, Norway and Iceland.
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).
Chart 4. Deposit Rates in France. Source: ECB.