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Consumer Lending in France

Consumer Lending in France

Favourable economic conditions favour consumer lending

Consumer lending’s appreciable performance in 2017 should continue into the short-term due to noteworthy economic improvement in the country. French households are less indebted than the EU average, offering growth potential over the forecast period.

No real recovery for revolving loans

Ongoing tough regulations on revolving credit are hampering the recovery of card lending and encouraging consumers to turn to long-term loans when purchase a car. The “Lagarde law” in 2010 and the “Hamon law” in 2014 introduced measures to control distribution of revolving credit since it was generally associated with over-indebtedness and used for small purchases rather than durable goods or assets.

Safe investment in bricks and mortar in France

In 2017, mortgages/housing registered the strongest rise in actual value terms in gross lending across consumer lending. House prices continued to increase with the category also benefiting from low interest rates, which reflects strong demand.

Education lending still slow to find popularity

Surprisingly, despite interest-free loans from the French Government, incentives by retail banks and low interest rates in general, education lending is still slow to find favour in France. Universities and engineering schools are subsidised in France.

Retail banks fare better than credit agencies

Local strict regulations continue to affect specialised financial institutions that generally are subsidiaries of major banks. Such institutions provide revolving credit through card lending at high interest rates.


Consumer Lending in France - Industry Overview
EXECUTIVE SUMMARY
Favourable economic conditions favour consumer lending
No real recovery for revolving loans
Safe investment in bricks and mortar in France
Education lending still slow to find popularity
Retail banks fare better than credit agencies
MARKET DATA
Table 1 Consumer Lending: Outstanding Balance by Category: Value 2012-2017
Table 2 Consumer Lending: Outstanding Balance by Category: % Value Growth 2012-2017
Table 3 Consumer Lending: Gross Lending by Category: Value 2012-2017
Table 4 Consumer Lending: Gross Lending by Category: % Value Growth 2012-2017
Table 5 Consumer Lending: Non-performing vs Other Loans Outstanding Balance: % Value 2012-2017
Table 6 Mortgages/Housing: Non-performing vs Other Loans Outstanding Balance: % Value 2012-2017
Table 7 Consumer Credit: Non-performing vs Other Loans Outstanding Balance: % Value 2012-2017
Table 8 Card Lending: Non-performing vs Other Loans Outstanding Balance: % Value 2012-2017
Table 9 Forecast Consumer Lending: Outstanding Balance by Category: Value 2017-2022
Table 10 Forecast Consumer Lending: Outstanding Balance by Category: % Value Growth 2017-2022
Table 11 Forecast Consumer Lending: Gross Lending by Category: Value 2017-2022
Table 12 Forecast Consumer Lending: Gross Lending by Category: % Value Growth 2017-2022
DEFINITIONS
SOURCES
Summary 1 Research Sources
Consumer Credit in France - Category analysis
HEADLINES
PROSPECTS
Unstable outlook for consumer credit despite some positive signs
Auto lending continues to record higher growth than card lending
Education lending slow to gain favour despite incentives from banks and the State
COMPETITIVE LANDSCAPE
Retail banks in a favourable position
Government’s involvement in attempt to control credit agencies
Specialised credit institutions attempt to gain consumers
CATEGORY DATA
Table 13 Consumer Credit: Outstanding Balance by Category: Value 2012-2017
Table 14 Consumer Credit: Outstanding Balance by Category: % Value Growth 2012-2017
Table 15 Consumer Credit: Gross Lending by Category: Value 2012-2017
Table 16 Consumer Credit: Gross Lending by Category: % Value Growth 2012-2017
Table 17 Forecast Consumer Credit: Outstanding Balance by Category: Value 2017-2022
Table 18 Forecast Consumer Credit: Outstanding Balance by Category: % Value Growth 2017-2022
Table 19 Forecast Consumer Credit: Gross Lending by Category: Value 2017-2022
Table 20 Forecast Consumer Credit: Gross Lending by Category: % Value Growth 2017-2022

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