French banks hit by falling bond sales

30 December 2011

Two of the biggest banks in France have been hit by sliding bond sales of late.

Bloomberg reports that Credit Agricole and BNP Paribas - which has operations in more than 80 countries - are likely to experience a slowdown next year after firms raised the smallest amount in the second six months of a year since 2007.

Data collated by the news agency revealed bond sales by French companies have dipped by 22 per cent in the second half of 2011, while the country's AAA credit rating with Standard & Poor's may be at risk as the nation's economy - which is the second largest in Europe - looks set to enter recession.

Bernard du Boislouveau, co-head of Credit Agricole CIB in Paris, admitted the coming 12 months will be challenging for financial institutions in France.

The industry figure stated: "Macro risk is combined with the sovereign-debt risk and that’s far from being resolved."

By Claire Archer

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