Financial System of France - Essay Example
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.
