This decrease is similar to the one observed between 2008 and 2009 (-13.2%) and mainly stems from two components: on the one hand, foreign countries (-26.8% in 2012), the share of which stepped back between 2010 and 2012 from 27.3% to 21.1% of total loans; on the other hand, property developers (-15.3% in 2012), which have recorded a steady reduction in share since 2008, from 60.5% to 48.9% in 2012.

Exposures to the commercial property sector showed a 2.9% drop in 2012, an unprecedented evolution since 2008. Bank exposures are mainly concentrated in France (66.2%). Abroad, they are primarily located in Europe (in particular Italy and Belgium) and in the United States of America. In terms of borrower type, investors and property companies are still the principal recipients of outstanding financing from French banks. In terms of property type, the residential sector still concentrates the bulk of exposures (39.3%), offices (17.6%) or commercial premises (14.4%) lagging far behind.

Banks’ lending criteria have taken into account the worsening economic conditions: progressively tightened over the last few years, they either remained unchanged or were tightened, particularly regarding property developers and investors.

Finally, the average exposures’ quality has kept improving: after reaching a peak in 2010, the nonperforming loans rate exhibited a reduction for the second consecutive year, albeit at a still relatively high level (8%); at the same time, the coverage ratio increased once again to reach 36.8%, its highest level since 2008.

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Updated on the 25th of February 2025