We also incorporated targeted adjustments to account for material changes to bank balance sheets resulting from the COVID event, such as large drawdowns on corporate credit lines. At that time of great uncertainty, this sensitivity analysis helped sharpen our understanding of how banks might fare under the wide range of possible paths of the economy.
The current focus on competitiveness in France, leading towards an institutional and fiscal set-up that can support firms’ investment and innovation, is therefore a welcome step in the right direction. It would be particularly welcome if this improved in particular the functioning of labour market for young people, so that they can find a job.