France : Financial Sector Assessment Program-Technical Note-Risk Analysis of Banking and Insurance Sector

Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

October 29, 2019

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

France is home to numerous banks and insurers which are very active at a global scale. Four Global Systemically Important Banks (G-SIBs) are incorporated in France as well as multiple number of large insurers. Assets of banking system exceed GDP by 2.7 times. Four G-SIBs dominate France’s financial landscape, also taking into account bancassurance (i.e., banking and insurance companies working under financial conglomerate structure) business model they have. Global presence and diversification, integration of banking and insurance activities defined the perimeter and scope of systemic risk assessment (including stress testing) of FSAP. This technical note contributes to the FSAP’s assessment of systemic risk with a comprehensive set of stress testing exercises. The assessment is based on stress tests, which simulate the health of banks, insurers under severe yet plausible (counterfactual) adverse scenarios. Scenarios include global and regional financial market turmoil (shocks to term and risk premiums), a major slowdown of economic activity in Euro Area (EA) and France due to secular stagnation and trade shocks. The analyses include simulations based on solvency and liquidity scenarios.

Series:

Country Report No. 19/322

Subject:

English

Publication Date:

October 29, 2019

ISBN/ISSN:

9781513517773/1934-7685

Stock No:

1FRAEA2019005

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

90

Please address any questions about this title to publications@imf.org