Bank of France Governor Francois Villeroy de Galhau said the country’s banking sector is “solid” and doesn’t suffer from under-regulation seen in the US or a lack of profitability like Credit Suisse.
(Bloomberg) — Bank of France Governor Francois Villeroy de Galhau said the country’s banking sector is “solid” and doesn’t suffer from under-regulation seen in the US or a lack of profitability like Credit Suisse.
“The French banking industry is concentrated around six large banks that all have a stable and profitable business model, a strong control of risk, and a high degree of conformity to rules,” Villeroy said in an interview with Le Monde newspaper.
Other comments from Villeroy in Le Monde interview:
- UBS buying Credit Suisse is a “welcome solution”
- Regarding the ECB decision to raise interest rates by 50 basis points: “It was the coherent decision, which was welcomed including on markets. The central bank is responsible for price stability and financial stability. The instruments for these objectives are different”
- “Inflation is still too high in France, even if it will start to decline between now and the end of the first half, and as its retreat should continue in the second half of the year”
- ECB must be pay attention to underlying inflation, which “risks being more persistent than energy and food price increases”
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