French Banking Federation seeks mortgage rule easing and opposes Livret A hike

The French Banking Federation (FBF) is advocating for regulatory changes regarding mortgage lending and savings accounts. The federation has requested that the High Council for Financial Stability (HCSF) ease current mortgage rules, which limit debt-to-income ratios to 35%. The FBF argues these regulations act as a “brake on investment” and suggests increasing flexibility within the existing 20% exemption envelope to allow for more diverse lending, including to investors.

Separately, the FBF has expressed strong opposition to a proposal by the Minister for Ecological Transition, Monique Barbut, to raise the Livret A savings account ceiling from 22,950 euros to 30,000 euros. The proposal aims to fund national climate change adaptation plans. FBF President Olivier Gavalda characterized the move as a “very bad idea,” arguing it would increase public spending by benefiting wealthier account holders and would divert liquid savings away from the long-term investments required by businesses for the green transition.