The Banque de France found itself in 2024 faced with an unprecedented financial situation with an operational loss of 17.7 billion euros. This loss, far from being anecdotal, highlights deep fragility within the European financial system, exacerbated by inflation, increase in interest rates and public debt management.
The source of colossal loss
The Banque de France recorded a loss of 17.7 billion euros in 2024, mainly due to the management of its portfolio of state bonds in a context of fluctuating interest rate. Several factors are responsible for this loss:
- Massive purchases of low -rate bonds: at the time of the health crisis, the ECB had bought low -yield state bonds (approximately 0.7 %), in a framework of economic support. This had an impact on the profitability of the assets of the Banque de France.
- A difference between the interest rates of assets and liabilities: when interest rates increased to counter inflation, the ECB had to remunerate bank deposits at much higher rates (4 %), while the bonds purchased at the start of the crisis generated much lower yields.
- The drop in returns: the yields of these obligations have been insufficient to compensate for the high costs associated with the increase in the rate of remuneration for bank deposits, which caused an imbalance in the accounts of the Banque de France.
- Uncompromising losses: although the bank has partially compensated for this loss by its reservations, a net sum of 7.7 billion euros remains unrecovered, which affected finances of the French state.
These elements explain the nature and the extent of the loss suffered by the Banque de France. In addition, they shed light on the weaknesses of the European monetary system in the face of a moving economic context.
Implications for the State and Perspectives
In addition to these direct losses, the situation causes major concerns with regard to French public finances.
The net loss of 7.7 billion euros in 2024 prevents the Banque de France from paying dividends to the State, which has thus reduced the resources available to the State for its expenses.
This loss, although abounded by the accumulated reserves, shows a critical trend that started in 2023 with a deficit of 12.4 billion euros.
The fact that These losses worsen from one year to the next encourages to reflect on the sustainability of this model as well as on the capacity of the Banque de France to maintain such management in such a volatile economic context.
However, the financial authorities provide for a reduction in losses in 2025, which suggests that the situation could stabilize if the economic conditions improve. But this will largely depend on the evolution of interest rates and inflation, as well as the response of the ECB to avoid a collapse of national central banks.
In the long term, such a recurring loss could force the state to review its economic priorities, even lead to adjustments in its budgetary policy.
This loss reveals on the weaknesses of the European economic system and challenges the sustainability of current monetary policy. The uncertainty that persists as to the evolution of interest rates and the impact of these choices on public finances requires a serious reflection on the future of the welfare state and the management of public finances in France.
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