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French Authorities' Reactions in the Wake of the Crisis*

Published online by Cambridge University Press:  31 January 2011

Iris M. Barsan
Iris M. Barsan
Affiliation:
LLM Research Assistant, Sorbonne-Affaires (University of Paris 1, Panthéon-Sorbonne).
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Abstract

As most states, France has been affected by the global financial crisis and has quickly taken appropriate steps to tackle its worst effects. Thus, France immediately took measures to respond to the liquidity crisis and recapitalised the most important banks in order for them to continue to finance the ‘real economy’. Some measures have been aimed directly at the ‘real economy’, such as the creation of a mediator for the distribution of credit and the establishment of a French sovereign wealth fund aimed at investing in strategic companies facing difficulties and in medium-sized companies. After the first wave of the crisis, France took a preventive measure concerning the remuneration of traders and a punitive measure by creating an exceptional taxation of traders' remuneration. But the crisis has also provoked a long-term reform of the French supervisory landscape, merging the supervisory authorities of the banking and the insurance landscape into a single body, the Authority for Prudential Control (Autorité de Contrôle Prudentiel).

Keywords

banksliquidity crisissupervisionprudential controlrecapitalisationstate aid
Type
Articles
Information
European Business Organization Law Review (EBOR) , Volume 11 , Issue 4 , December 2010 , pp. 549 - 574
Copyright
Copyright © T.M.C. Asser Press and the Authors 2010

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References

* This article does not take into account Act No. 2010-1249 of 22 October 2010 on banking and financial regulation as this Act was voted on after the article had been finished. The Act introduces a number of modifications into French banking and financial law, such as measures concerning the creation of a Council of Financial Regulation and Systemic Risk, control of rating agencies, short-selling and derivatives, risk management in financial institutions, and clients' rights regarding professionals selling financial products.