The Bank of France has utilized a special reserve fund to address a significant financial loss amounting to €12.44 billion in 2023. This loss was primarily attributed to the European Central Bank's (ECB) swift adjustments in interest rates, which escalated the costs associated with servicing deposits. In response to this financial strain, François Villeroy de Galhau, the Governor of the Bank of France, assured that there would be no need for a taxpayer-funded bailout, pledging France's financial stability. This move comes amid broader financial strategies within the European bond markets, where a key risk measure is anticipated to reach multi-year lows following the ECB's revision of its rate-setting approach, thereby minimizing opportunities for arbitrage between its principal benchmarks.
The Bank of France tapped a special reserve fund to cover a €12.44 billion loss in 2023 after the ECB’s rapid interest-rate increases drove up the cost of servicing deposits
A key measure of risk in European bond markets is set to extend its decline to multi-year lows after the ECB revised the way it sets rates, reducing the room for arbitrage between its main benchmarks, according to Natixis https://t.co/TLusy4KF18
A key measure of risk in European bond markets is set to extend its decline to multi-year lows after the ECB revised the way it sets rates, reducing the room for arbitrage between its main benchmarks, according to Natixis https://t.co/94YvsRuwFr
Bank of France taps reserves to cover €12.44 billion loss https://t.co/83nYVHqVdJ via @WHorobin https://t.co/nN5iEwtNkp
A key measure of risk in European bond markets is set to extend its decline to multi-year lows after the ECB revised the way it sets rates, reducing the room for arbitrage between its main benchmarks, according to Natixis https://t.co/7wzl373Dzy
The Bank of France tapped a special reserve fund to cover a €12.44 billion loss in 2023 after the ECB’s rapid interest-rate increases drove up the cost of servicing deposits https://t.co/ClIu3a825u
The Bank of France tapped a special reserve fund to cover a €12.44 billion loss in 2023 after the ECB’s rapid interest-rate increases drove up the cost of servicing deposits https://t.co/GcjS4Fc2sI
French central bank taps provisions to cover 12 bln euro loss https://t.co/HgstSZ9rYI https://t.co/zrfFa13AC5
🔴 THE BANK OF FRANCE TAPS RESERVE TO COVER €12.44 BLN LOSS AS RATES RISE, VILLEROY PLEDGES THAT FRANCE WILL NOT NEED A TAX PAYER BAILOUT.