Four top French banks all pass stress test: regulator
All four top French banks scrutinised by EU stress tests passed the examination, the French regulator said on Friday.
The four banks, BNP Paribas, Societe Generale, Credit Agricole and BPCE passed the "particularly severe" tests with an average top class Tier One shareholder fund ratio of 7.5 percent, above the baseline of 5.0 percent, the regulator said.
"These good results are explained by a rigorous management of risks but also by the universal model of French banks which showed their resilience during the crisis (of 2009)," central bank governor Christian Noyer said.
The French banks would not need to increase their capital even in the event of a severe recession, and a strong rise of unemployment, a surge of inflation and a sudden drop in the value of the dollar against the euro, the regulator concluded.
© 2011 AFP