Traditionally resistant to risky investments, the French are no exception to the rule in this time of crisis. Livrets A, which only yielded 0.5% (when inflation reached 0.8% in July), are still packed: in the first half of the year, the collection of the preferred placement of the French reached 20.41 billion euros. A good basis for surpassing the 2012 record (28.16 billion in one year)?
Beyond the livret A, it is also the current accounts that have been filled since the start of the crisis. According to the latest BPCE-Audrep savings and investments barometer, the savings rate for the second quarter reached 30%, twice as high as usual. According to OFCE, the French have already saved 75 billion euros since the start of the crisis. And 44% of the sums set aside by households would have remained in their current accounts.
A windfall for the banks
An impressive windfall for the banks, which find themselves with a lot of liquidity. According to figures from Echos, deposits increased by 28% in the second quarter at BPCE and by 25% for the regional banks of Crédit Agricole. At BNP Paribas, the increase is comparable (27%). Its customers thus let 148 billion euros sleep in their accounts. Société Générale is a little behind (+ 18%) but the total deposits still reached 132 billion euros.
It remains to be seen what will become of all this liquidity. For banks, this is a convenient way to finance Government Guaranteed Loans (PGEs), even if the ECB’s low rates already allowed them to finance themselves inexpensively.
In the weeks and months to come, they will have the difficult task of making this windfall grow by targeting just in terms of investments. Because if the use of this savings is necessary for a good recovery of the economy, the French probably do not intend to abandon their (bad) habit: to save, whatever the cost.
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