Bank and loans: 2018 balance sheet and 2019 outlook under the microscope

What has happened on the bank side and credits in 2018 and what does 2019 foresee? Freezing banking rates in 2019, digitalization of banks, increase in consumer credit … We give you a short tour of the points to remember.

Freezing banking rates in 2019

banking rates

French banks have made a commitment to the President of the Republic, not to increase the rates for individuals in 2019. In addition, banks will cap the cost of banking incidents for consumers in a difficult situation up to 25 euros per month. Fees cannot exceed this amount but will vary depending on the institution.

The digitalization of banks is developing

With the arrival of banks and neo-banks, digitalization has developed strongly. The French are increasingly using their mobile or tablet to manage their account, make transfers … Data aggregators (Banking type) have also changed the landscape and can better manage his money.

In 2019 we celebrate the two years of the Macron law that was to improve banking mobility. This new legislation has especially increased competition between institutions and especially online banks. Customers still benefit little (6.5% of French are customers of an online bank).

And credit side real estate and real estate

And credit side real estate and real estate

In November 2018, outstanding loans to individuals in France was 1217 billion euros, up (2,400 billion in all with companies). The French banking federation announces an increase in this figure of 5.9% in one year. More than 47% of households hold at least one credit in 2017: 30.8% a mortgage and 27.2% a consumer loan. Consumer credit is doing well with an increase driven by the LOA in the automotive sector. The revolving credit also picks up colors in 2018 according to the Banque de France.

The mortgage has passed a symbolic threshold in 2018: outstanding home loan exceeded the 1000 billion mark (+ 5.9% in one year). The reason for this rise is mainly in the very low-interest rates: 1.50%. France is the first in Europe for real estate loans: 27% of euro area real estate loans are granted by a French bank (figure from the European Central Bank in June 2018). In addition, for the first time in seven years, companies in 2019 are getting cheaper from their bank (average rate of 1.44% in November 2018) than markets (1.47% on average at the same period), according to the latest statistics from the Banque de France.

A large but low-paying savings

A large but low-paying savings

The French have saved a lot in 2018: 5106.9 billion euros, it is the stock of major financial investments held by the French in the 2nd quarter of 2018. With very low-interest rates, the traditional savings booklet A is shunned, life insurance in euros support takes colors.

In 2019 the PEA has been relaxed on the tax side: partial withdrawals without closing the contract after five years are possible.