SHARE
COPY LINK

BANK

Four top French banks all pass stress test

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.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BANKS

French banking giant to pay US €700m in fines

French bank Credit Agricole has agreed to pay €700 million ($800 million) to the US to settle charges it conducted illegal business in Iran and other sanctioned countries, reports have claimed.

French banking giant to pay US €700m in fines
Photo: AFP

The settlement will be announced this week, possibly as soon as Tuesday, the person said. The deal with the US Department of Justice and other agencies is a deferred prosecution agreement and does not require Credit Agricole to plead guilty.

US authorities accuse the bank of illegally handling billions of dollars in transfers for entities from countries under US sanctions like Sudan, Cuba and Iran between 2003 and 2008.

 Some of the bankers responsible for the wrongdoing have already been dismissed, while one employee is still with the French bank and is expected to be dismissed, the person said.

Besides Justice, the agencies involved in the settlement are the Treasury Department, the Federal Reserve and the New York Department of Financial Services.

Rival French bank BNP Paribas was ordered to pay a record $8.9 billion fine earlier this year for similar violations in the long-running US investigation of European banks for illicit dollar transactions with countries under US sanctions.

SHOW COMMENTS