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The solution to this crisis and the restoration of the confidence of all economic agents clearly involves, as a matter of priority, the restoration of governments' credibility in reducing public debt and deficits, the rapid implementation of the bailout plan providing a lasting solution to Greece, with the participation, on a voluntary basis, of private creditors. It also involves improving the eurozone's governance and putting in place the financial instruments that Europe needs in order to reassure the markets regarding a possible contagion risk.
The French banks reiterate that market concerns originate from the public finance situation of certain eurozone countries, and not that of the European banks themselves. Some countries need to regain the confidence of investors in order to be able to continue to borrow in the markets in satisfactory conditions. Any increase in European banks' shareholders equity would not provide a response to this issue.
For their part, the French banks are already involved in a process to bolster their solvency ratios: they have increased their shareholders equity by €50 billion over the last two years, and have set a target of bringing forward the timetable previously scheduled by the regulators for the implementation of Basel III. As a result of putting their profits in reserve and changes in their business model, they are able to adapt to the circumstances and meet the regulatory authorities' requirements while continuing to finance the economy.