"There is no risk because there is no possible contagion mechanism between the events we are seeing and French banks," Philippe Brassac, chief executive of Crédit Agricole and president of the French Banking Federation, told France Inter. "French banks are very strong because of regulation" and "there is no mechanism, as there could be in the past, of spread". Since the bankruptcy of Silicon Valley Bank (SVB) in the United States on March 10, and despite the lifelines of the Swiss and American authorities, the banking sector fell back on the stock market on Friday, dragging all markets into the red.
As in the past week, concerns are focused on Credit Suisse, one of the 30 banks worldwide considered too big to fail, and which could be bought in whole or in part by the largest Swiss bank, UBS, as early as this weekend, in order to stop the panic. "Almost all French banks are subject to specific prudential rules" such as capital requirements, liquidity, interest rate risk management, listed the representative of French banks.
"With regard to US banks, there is no link between balance sheets," and as for Credit Suisse, "there is no possible contamination." Indeed, "since 2008 (...), the big banks no longer have the ability to link each other through monetary loans as we did in the past," said Philippe Brassac.
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