IDEAS home Printed from https://ideas.repec.org/p/imf/imfscr/2025-238.html

France: Financial Sector Assessment Program-Technical Note on Macroprudential Policy Framework and Tools

Author

Listed:
  • International Monetary Fund

Abstract

This Technical Note examines macroprudential policy framework and tools as part of Financial Sector Assessment Program (FSAP) in France. Authorities took and maintained several strong actions to mitigate risks to financial stability and further enhance macroprudential oversight since the last FSAP. While the High Council for Financial Stability (HCSF) is well-functioning and effective overall, its framework should be strengthened by adopting stronger rules on HCSF governance, transparency, and public accountability, and by clarifying its semi-hard and -soft powers. Communication of macroprudential policy can be further improved through periodic strategy reviews and adopting best practices in financial stability communications. Borrower-based measures on housing loans should be broadened to prevent leakages and reflect best practices. The availability of releasable capital buffers should be formalized by improving guidance regarding the neutral level of the credit protection reserve. Authorities should continue to closely monitor the vulnerabilities in the nonfinancial corporate sectors and stand ready to raise the countercyclical capital buffer rate if warranted. The report recommends that French non-bank financial institution macroprudential oversight has been proactive and should continue to be vigilant to emerging risks.

Suggested Citation

  • International Monetary Fund, 2025. "France: Financial Sector Assessment Program-Technical Note on Macroprudential Policy Framework and Tools," IMF Staff Country Reports 2025/238, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/238
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=569733
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfscr:2025/238. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.