Financial stability

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Post n°318

Markets normalising in 2023 following episodes of stress in 2022

Published on 06/22/2023

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By Luis Miguel Tavares

2022 was marked by significant market corrections against a backdrop of geopolitical tensions and monetary policy normalisation. While the financial system has absorbed these shocks well, localised episodes of stress have highlighted certain vulnerabilities. The Banque de France's market stress indicator tracks the origin and changes in market tensions.

Chart 1: Market stress at high levels throughout 2022
Chart 1: Market stress at high levels throughout 2022 Source: Bloomberg, SFTDS, Banque de France
Updated on 06/23/2023 12:06
Post n°310

Crypto-assets: 2022 confirmed already identified risks

Published on 03/16/2023

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By Claire Brousse and Youssef  Mouheb

In 2022, the crypto-asset market underwent a sharp fall in valuation. After previously attracting a number of retail investors who were searching for high yields in 2021, the market revealed its instability. The expansion and high volatility of the crypto-asset market has resulted in greater risks and losses for crypto players and investors alike.

Chart 1: A sharp fall in the crypto-asset market in 2022
Chart 1: A sharp fall in the crypto-asset market in 2022 Source: Bloomberg. Data as of 31 December 2022
Updated on 03/16/2023 08:39
Post n°309

Sub-Saharan Africa: the financial gender gap between men and women

Published on 03/13/2023

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By Marie-Hélène Ferrer, Luc Jacolin, Caroline Perrin

Although it is a factor in financial inclusion and development, the growth of mobile banking in Sub-Saharan Africa (SSA) has nonetheless gone hand in hand with a growing gender gap in financial inclusion. This unexpected consequence of financial digitalisation calls for a rethink of development policies.

Chart 1: Bank coverage (adult population with account, %) and gender gap (hatched)
Chart 1: Bank coverage (adult population with account, %) and gender gap (hatched) Source: Global Findex and authors’ calculations Note: Percentage of the adult population holding an account at a bank or other type of financial institution.
Updated on 03/13/2023 08:38
Post n°305

Digital players in the financial sector: between specialisation and diversification

Published on 02/20/2023

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By Laurent Clerc, Timothée Dufour, Pierre Harguindeguy and Stefano Ungaro

The customer base of digital financial players is rapidly expanding. The sector is characterised by a wide variety of business models. Among the players analysed over the 2018-20 period, the "100% digital" ones have become profitable because of their specialisation approach and their ability to develop strategic partnerships, while the traditional players have instead sought to diversify their customer base.

Chart 1 - New customers and number of accounts opened with digital finance players, 2018-20.
Chart 1 - New customers and number of accounts opened with digital finance players, 2018-20. Source: ACPR, based on data from qualitative questionnaires submitted to a sample of 15 digital financial players providing banking services.
Updated on 02/20/2023 08:51
Post n°304

Are bancassurers more resilient? A French perspective

Published on 02/13/2023

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By Cyril Pouvelle

The French bancassurance model stems from the growth of the life insurance market. Based on the results of a model of 800 French banks on a non-consolidated basis over the 1993-2021 period, being part of a financial conglomerate enhances the resilience of groups due to the fact that they are exposed to certain external shocks in an asymmetric manner.

Chart 1: Changes in the Z-score, a measure of default risk, for banking entities belonging to a financial conglomerate and other banking entities
Chart 1: Changes in the Z-score, a measure of default risk, for banking entities belonging to a financial conglomerate and other banking entities Source: ACPR
Updated on 02/13/2023 08:35
Post n°302

Housing subsidies: a smaller upward impact on rents if supply adjusts

Published on 01/30/2023

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By Céline Grislain-Letrémy and Corentin Trevien (CREST-ENSAE)

We evaluate the long-term effect of housing subsidies on the price, quantity and quality of private rental accommodation in France. The overall upward effect on rents is accompanied by an increase in the total number of dwellings. These effects depend on the market segment. They have not proved long-lasting for small dwellings, which have increased in quantity.

Chart 1: Share of housing subsidies in French GDP
Chart 1: Share of housing subsidies in French GDP
Updated on 01/30/2023 08:29
Post n°300

The stages in France’s European financial integration

Published on 01/12/2023

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By Iris Chagnaud, Jean-Baptiste Gossé, Florian le Gallo and Rémy Lecat

France’s European financial integration, measured by its capital flows to its main partners, accelerated strongly with the introduction of the euro and European measures designed to unify financial services. It fell back significantly with the global financial crisis and then the euro area debt crisis. Its recovery in 2018-19 has since been tested by the Covid-19 and energy crises.

Chart 1. France’s net capital flows abroad (1980-2021, % of GDP)
Chart 1. France’s net capital flows abroad (1980-2021, % of GDP) Source: BDF and BIS, authors’ calculations.
Updated on 01/12/2023 10:05
Post n°294

Natural disasters: exposure and underinsurance

Published on 12/08/2022

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By Céline Grislain-Letrémy

Overseas households are more exposed to natural disasters than in mainland France, with a 20% increase in the sinistrality expected by 2050. However, far fewer of them are insured. Insurance supply is developed and regulated. The low subscription is mainly due to uninsurable housing and the anticipation of assistance.

Figure 1 : Effects of Hurricane Maria, Guadeloupe, 2017
Figure 1 : Effects of Hurricane Maria, Guadeloupe, 2017 Source: https://commons.wikimedia.org/wiki/File:Dégats_Ouragan_Maria_(Aprés_son_Passage).jpg
Updated on 12/08/2022 17:25
Post n°289

Paris maintains its rankings in FX and rate derivatives markets

Published on 11/04/2022

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By Amélie Robinette

In 2022, the Paris marketplace maintained its rankings in global foreign exchange and over-the-counter interest rate derivatives markets. Activity volumes in Paris have risen sharply over the past three years, driven by strong internationalisation and aided by growing digitalisation.

Table 1: France ranks 7th globally in the FX market and 5th in the interest rate derivatives market
Table 1: France ranks 7th globally in the FX market and 5th in the interest rate derivatives market Source: Banque de France for France, BIS for world data. Note: Daily volume of activity in the main financial centres (USD billions, at current exchange rates), gross data adjusted for domestic double counting.
Updated on 11/04/2022 08:46
Post n°286

The challenge of strengthening European financing for start-ups

Published on 10/14/2022

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By Boris Julien-Vauzelle, Camille Jehle, Jean-Baptiste Gossé

In 2021 and the first half of 2022, European start-ups raised record amounts and 68 of them gained the status of “unicorn”. Up to now, this dynamic has relied on the increasing involvement of US and Asian investors, particularly for late-stage funding rounds. This emphasises the need for the European Union (EU) to strengthen its own venture capital industry.

Chart 1: Investor origin by amounts raised by EU27 start-ups (2016-21)
Chart 1: Investor origin by amounts raised by EU27 start-ups (2016-21) Source: Banque de France calculations, based on Crunchbase data (at 31 July 2022). Note: The investors considered here are lead investors whose identity is known (see definition below).
Updated on 10/14/2022 15:54

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