French Banks Amid the Global Financial Crisis
IMF Working Papers, September 1, 2009
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Bibliographic details
- Authors: Yingbin Xiao
- Published: September 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451873481.001
Overview
- Author: Yingbin Xiao
- Publication date: September 1, 2009
- Series: IMF Working Papers, Working Paper No. 2009/201
- Pages: 22
- DOI: https://doi.org/10.5089/9781451873481.001
- ISBN: 9781451873481
- ISSN: 1018-5941
- Summary: The paper conducts qualitative and quantitative analyses to examine the performance of French banks during 2006-2008 and the financial support measures taken by the French government. It finds that French banks were not immune but proved relatively resilient to the global financial crisis, reflecting their business and supervision features. An event study of the impact of government measures on CDS, debt, and equity markets points to the reduction of credit risk and financing cost as well as the redistribution of resources. The paper emphasizes that with the crisis still unfolding, uncertainties remain and challenges lie ahead, calling for continued vigilance and enhanced risk management.
Key findings
- French banks were not immune to the global financial crisis but proved relatively resilient due to their business and supervision features.
- Event study results indicate:
- Reduction of credit risk.
- Reduction of financing cost.
- Redistribution of resources across markets.
- The crisis remained unfolding at the time of writing, implying persistent uncertainties and forthcoming challenges for banks and policymakers.
- Emphasized need for continued vigilance and enhanced risk management.
Methods and analysis
- Combined qualitative and quantitative analyses applied to French banking sector performance for 2006-2008.
- Event study framework applied to government measures to assess impacts on:
- CDS (credit default swap) markets
- Debt markets
- Equity markets
Policy implications and recommendations
- Continued vigilance by regulators and banks in monitoring evolving crisis conditions.
- Enhanced risk management practices across banks to address residual uncertainties and emerging challenges.
- Recognition that government support measures can reduce credit risk and financing costs while also redistributing resources—policy design should account for these effects.
Subject and keywords
- Subject: Banking, Commercial banks, Credit default swap, Foreign banks, Stocks
- Keywords: bank assets, credit risk, French bank, State capital injection, WP
Publication notes
- Disclaimer included in the original working paper: "This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate."
French Banks Amid the Global Financial Crisis — IMF Working Paper No. 2009/201 (Yingbin Xiao, September 1, 2009).
Content in this bundle
- _wp09201 - References