French banking system is composed of approximately 450 banking business entities, which operate close to 40,000 branches. With this magnitude banking institutions, approximately 60 million people are considered as the banked segment. One of the defining characteristics of French banking system is the proximity of financial and non-financial institutions to the customers, which provide adequate banking services and products. Nonetheless, all organizations providing banking services operate under authorized establishments. Authorization of establishments defines the scope of banking activities. The establishments authorized include general-purpose credit institutions, investment service providers, and specialized credit institutions.
All the commercial banks and other financial institutions within France are regulated and controlled by Banque de France, the French Central Bank. Linked to the European Central Bank, Banque de France has been effective in administering monetary policies and ensuring compliance amongst financial organizations. Some of the core functions of Banque de France are formulation and implementation of monetary and credit policies, issuance of currency, ensuring financial stability, monitoring French’s financial markets, and controlling all the foreign reserves. Banque de France is usually administered by a General Council having the responsibility of developing and carrying out all activities that relate to monetary policies.
French financial (stock) market has primary and secondary markets. Primary markets provide vistas for introduction of new securities while secondary markets are involved in the actual trading. Paris Stock Exchange market had four markets prior to 2005; first, second, new, and free markets. ...Show more