France: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis
IMF Staff Country Reports, August 29, 2025
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- Published: August 29, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229022675.002
Financial sector resilience and overarching assessment
- The French financial sector has proven resilient to the stress events of the last five years.
- Resilience exists despite high external and domestic uncertainty.
- The stability of the French financial sector is highlighted as an important element of strength amid domestic political uncertainty and rising global geoeconomic risks.
Sovereign debt markets and market functioning
- Sovereign debt markets have functioned well despite high external and domestic uncertainty.
- Large debt issuance continues to be smoothly absorbed by a deep and well diversified buyer base.
Banks, funding, and credit dynamics
- Banks have pre-funded part of their upcoming roll-over needs.
- Credit growth has moderated.
- Household and non-financial corporate (NFC) debt remain elevated.
Housing market and balance-sheet dynamics
- The housing market is undergoing an orderly adjustment.
- Elevated household and NFC debt are highlighted as ongoing vulnerabilities even as adjustment proceeds.
Risks and outlook
- Domestic headwinds and rising global geoeconomic risks are identified as sources of uncertainty for the financial sector.
- The interplay of political uncertainty domestically and global uncertainty externally frames the risk environment.
Source: France: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis (August 29, 2025).
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- Executive Summary