France: Financial Sector Assessment Program-Technical Note on Macroprudential Policy Framework and Tools

Macroprudential institutional arrangements remain largely unchanged since the last FSAP, with several features aligning with best practices for effective macroprudential policy. The Haut conseil de stabilité financière (HCSF) is the designated authority with hard powers over specific tools and soft powers for recommendations. Chaired by the Minister of Economy and Finance, it provides a strong role for the Governor of the Banque the France (BdF), enabling willingness to act. Membership includes key agencies (which have their own financial stability mandates, consistent with best practices, and can rely on the deep expertise of their staff) and external members, facilitating coordination and mitigating inaction bias. The market authority is an active participant in the HCSF, unlike in many jurisdictions. National authorities have adequate powers for information gathering and strong accountability frameworks. The European Central Bank (ECB) has top-up powers over hard tools and the European Systemic Risk Board (ESRB) can issue warnings and recommendations.