At the 2025 ACPR Conference, Governor François Villeroy de Galhau said French banks are sound but currently lag behind European peers in profitability, mainly because of a predominance of fixed‑rate loans. He noted that the main competitive gap is trans‑Atlantic, with U.S. investment‑banking revenues roughly three times higher than those of European banks. Villeroy stressed the need for regulatory simplification without deregulation, citing recent European Banking Authority measures and the European Banking Supervision’s ‘Next Level Supervision’ initiative. He also highlighted the importance of a wholesale central‑bank digital euro and tokenised private currencies to strengthen European payment sovereignty, and urged the creation of cross‑border European champions through a more flexible Banking Union and a European liquidity support scheme.
© Banque de France 2025.
Summary adapted from material on the Banque de France website (https://www.banque‑france.fr ).
https://www.banque-france.fr/en/governors-interventions/competitiveness-banking-sector-few-insights-major-challenge-france-and-europe
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