France: Financial Sector Assessment Program-Technical Note-Nonfinancial Corporations and Households Vulnerabilities

IMF Staff Country Reports, October 29, 2019

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Canonical URL: France: Financial Sector Assessment Program-Technical Note-Nonfinancial Corporations and Households Vulnerabilities

Analyzes the structure of nonfinancial corporate financing in the French economy.
Examines potential vulnerabilities of the corporate sector and their possible channels of transmission through interconnections with the financial system.
Documents the evolution of French corporate debt since the global financial crisis.
Analyzes the riskiness of corporate debt, the quality of allocation of this debt, and heterogeneity across sectors and firms with potential macroeconomic implications.
Complements existing studies by the Institut National de la Statistique et des Études Économiques, the Haut Conseil de Stabilité Financière and the Banque de France by undertaking a cross-country comparative analysis.

Empirical analysis suggests corporate debt may be allocated efficiently across publicly listed companies.
The allocation picture is less clear among nonpublicly listed firms.
The note focuses on vulnerabilities and transmission channels between corporate sector risks and the financial system (no further quantitative results provided on the landing page).

Subjects: Banking; Financial crises; Financial institutions; Financial statements; Global financial crisis of 2008-2009; Housing; Housing prices; Loans; National accounts; Prices; Public financial management (PFM).
Keywords: bank credit; CR; debt financing; financial condition; financial crisis; Financial statements; Global; Global financial crisis of 2008-2009; household debt; Housing; housing loan; Housing prices; interest rate; ISCR; Loans; real GDP; return on assets.