France's Prudential Supervision and Resolution Authority (ACPR) said on Tuesday that banks' exposure to domestic public debt is limited and a spike in government bond yields would not threaten financial stability. ACPR secretary-general Emmanuelle Assouan told a Paris briefing she was reassured about the impact of recent sovereign spread moves on banks, noting holdings are modest and diversified. An ACPR report showed French banks will hold about €190bn of domestic public debt in 2025, roughly 2

France's Prudential Supervision and Resolution Authority (ACPR) said on Tuesday that banks' exposure to domestic public debt is limited and a spike in government bond yields would not threaten financial stability. ACPR secretary-general Emmanuelle Assouan told a Paris briefing she was reassured about the impact of recent sovereign spread moves on banks, noting holdings are modest and diversified. An ACPR report showed French banks will hold about €190bn of domestic public debt in 2025, roughly 24% of their sovereign bond holdings and about 2% of total assets. The comments come as the government seeks to rein in the deficit and student protests in their third week refocus investor attention on public finances.