Question if the banks continue such a policy is

None is exception. In 2009, all French banks have seen their balance size decrease. Something rare so far where they have preferred policy of growth through acquisition or investment. But, two years, the crisis is over by then and several direct and indirect effects have caused a reversal of trend. First, the decline in demand for credits on the part of individuals and companies; then, decreased the value of certain active financial crisis, including those recorded in market value; and, finally, the improvement of their solvency ratios.

To achieve this, they have preferred a reduction or lesser increase in their weighted jobs strategy. "First of all, banks have sought to shed their toxic assets, such as for example the CDO, explains Antoine Frachot, Director of the Group of the Swiss national economy and statistics." They used this public devices that have been created in almost all countries to help banks manage these assets. "Second, they have not renewed or have reduced their lines of credit to any sort of counterparties: loans to SMEs, housing loans, credits to the sovereign, etc.".

Among them, BNP Paribas, which proves to be the largest French bank balance sheet size. Apparently, the assets are very much the same between late 2009 and end 2008: around 2,000 billion euros. But, on closer inspection, the year was marked by the integration of Fortis Bank, weighing more than 518 billion euros. In 2009, we made a very large effort to reduce our footprint", thus confirmed, Baudouin Prot, administrator and CEO of the Bank, in mid-February.

Prudential precautions

Why such a policy BNP Paribas has officially anticipated the consequences of the current thoughts of the Basel Committee in prudential matters. It reduced the assets of the Belgian group of 107 billion euros, but also its own of 429 billion. For the first time, she used significantly the "netting", the possibility to use the central clearing houses on derivatives. "Basel III proposes to involve a balancing zero derivatives contracts that are negotiated via compensation Chambers, which is a powerful incentive to focus on in place of OTC markets, explains Antoine Frachot.". This idea is of a global movement initiated by the g-20 and to reduce the share of products (including derivatives of credits, such as CDS) outside the regulated markets. "A way for regulators to improve liquidity and transparency in these markets.

Even if these clearing operations were possible before the crisis, few French banks have used. "There was no reason until the Basel Committee proposes to strengthen the concept of leverage ratio." "So far, we focused on our risk management, not on the size of our balance sheet", explains in BNP Paribas. Direct result, the portfolio of trading (which includes the activities of rest and derivatives) has been reduced by 31. However, the banking portfolio, consisting primarily of credits, increased by 40, 1.227 billion euros.

BPCE, for its part, has not used the 'netting' to reduce footprint of 114 billion but of certain assets and liabilities accounting financial fair value, and their management consisting of Natixis. Société Générale also speak of a decline in its balance sheet mainly located in the Bank Finance and investment (BFI):-23 since mid-2007. "The decline was still more marked on the funded portion of the balance sheet (-38 from mid-2007)", explains the establishment. In 2009, 8 billion euros in assets managed in extinction have been transferred.

Question if the banks continue such a policy is. "If the share of own funds was still increase, we find it difficult to protect the banking portfolio again since it has already worked on trading activity", prevents Baudouin Prot, suggesting that a restriction of credits could then be.