France capital adequacy: net nonperforming loans to capital
France capital adequacy: net nonperforming loans to capital stood at 12.09% in Q1 2026, according to IMF – Financial Soundness Indicators (FSIC), data reported by Banque de France. It is one of the indicators in the Financial soundness indicators table (Value · Quarterly), with a complete series running from Q4 2008 to Q1 2026. The complete series with an interactive chart, free to download.
This indicator in the Financial soundness indicators table
| Indicator | Q1-2026 | Q4-2025 | Q3-2025 | Q2-2025 | Q1-2025 | Q4-2024 | Q3-2024 | Q2-2024 | Q1-2024 | Q4-2023 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital adequacy of deposit takers | |||||||||||
| Nonperforming loans net of provisions to capital | 12.09 | 11.93 | 11.98 | 11.65 | 11.39 | 11.33 | 11.89 | 11.75 | 11.7 | 11.53 | |
| Large exposures to capital | 32.19 | 28.27 | 31.06 | 25.95 | 27.11 | 24.9 | 22.12 | 25.53 | 27.86 | 27.92 |
Understanding france capital adequacy: net nonperforming loans to capital
This indicator measures troubled assets by comparing nonperforming loans minus specific loan-loss provisions directly against the total regulatory capital base. By subtracting provisions, the numerator isolates the unreserved portion of impaired loans that ultimately threatens capital buffers. This approach contrasts with gross nonperforming loan metrics by acknowledging the loss-absorbing protection already established through prior provisioning policies.
Reading this series necessitates close attention to provisioning policy updates and regulatory definitions regarding loan impairment classification. Early estimates are subject to revision when banks update collateral valuations or reclassify borderline credits during annual reviews. Analysts should track longer-term multi-period horizons rather than single-quarter shifts, as provisioning adjustments can create abrupt step changes in the net figure.
Frequently asked questions
- What is subtracted from nonperforming loans in this calculation?
- Specific provisions established against expected credit losses on those impaired loans are deducted from the total.
- Why is this net measure considered a stricter solvency stress indicator?
- It highlights the residual capital vulnerability remaining after accounting for existing reserves held against bad debts.
- How do collateral valuations impact this series?
- Higher collateral values can lead to increased specific provisions or write-offs, altering the net nonperforming loan numerator.