France Tier 1 leverage ratio
France Tier 1 leverage ratio stood at 5.45% 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 | |||||||||||
| Tier 1 capital to total assets (leverage) | 5.45 | 5.54 | 5.43 | 5.5 | 5.46 | 5.56 | 5.35 | 5.41 | 5.38 | 5.47 | |
| 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 |
Understanding france Tier 1 leverage ratio
This ratio evaluates core Tier 1 capital against total unweighted balance sheet assets, providing a risk-insensitive gauge of financial leverage. Unlike risk-weighted measures, this metric treats all assets equally regardless of assigned risk weights, removing potential distortions from internal risk modeling assumptions. Total assets in the denominator include both on-balance sheet exposures and defined off-balance sheet items adjusted for credit conversion factors.
Evaluating this series requires awareness of seasonal balance sheet management, such as temporary quarter-end contractions in repo transactions designed to flatter the metric. Revisions to early estimates typically stem from retrospective adjustments to derivative valuations or securities financing transactions. Comparing this unweighted ratio alongside risk-weighted measures highlights instances where low-risk assets might mask underlying balance sheet leverage.
Frequently asked questions
- How does this leverage ratio differ from risk-based capital ratios?
- It measures capital against total unweighted assets, entirely avoiding risk-weight adjustments applied in traditional solvency metrics.
- Are off-balance sheet exposures included in the denominator?
- Yes, certain off-balance sheet commitments and derivatives are factored into total assets using standardized credit conversion factors.
- Why do quarter-end fluctuations occur in this series?
- Institutions occasionally engage in temporary balance sheet downsizing near reporting dates to optimize reported leverage metrics.