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French banks were behind almost half of the increase in lending to euro area non-financial corporations and households in 2017

Author

Listed:
  • Julien André
  • Jacques Morenas
  • Youssef Mouheb

Abstract

After accelerating sharply in 2014, growth in the euro area’s money supply (M3) has been stable since 2015 (4.6% in 2017), fuelled mainly by an increase in overnight deposits. Since end-2016, the French component has been growing faster than the euro area M3 aggregate. Its growth reached 8.3% in January 2018, outstripping the M3 aggregate by three points. Sustained by low interest rates and the programme of government securities purchases by the Eurosystem, credit to the private sector and credit to general government were the main sources of money creation in both France and the euro area. In the private sector, almost half of annual credit flows to non-financial corporations (NFCs) and households were provided by French monetary financial institutions (MFIs; in 2017, this amounted to EUR 139.4 billion out of a total of EUR 297.2 billion in the euro area).

Suggested Citation

  • Julien André & Jacques Morenas & Youssef Mouheb, 2018. "French banks were behind almost half of the increase in lending to euro area non-financial corporations and households in 2017," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 217, pages 1-10, Spring.
    • Handle: RePEc:bfr:quarte:2018:217:01
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    More about this item

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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