Front Matter

Front Matter Page

© 1997 International Monetary Fund

March 1997

IMF Staff Country Report No. 97/19

France—Selected Issues

This selected issues report on France was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with this member country. As such, the views expressed in this document are those of the staff team and do not necessarily reflect the views of the Government of France or the Executive Board of the IMF.

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Front Matter Page

INTERNATIONAL MONETARY FUND

FRANCE

Selected Issues

Prepared by a staff team headed by J. R. Artus and C. M. Watson, with K. Habermeier (all EU1), and including O. Doré (EU1), C. Dziobek (MAE), I. Halikias and J. Levy (EU1), and C. Van Rijckeghem (RES)

Approved by the European I Department

February 4, 1997

Contents

  • Basic Data

  • I. Health Expenditure

    • A. Introduction

    • B. Institutional Setting

    • C. Health Expenditure Trends

    • D. Factors Underlying Past and Future Spending Pressures

    • E. Past Reforms in France and Elsewhere: Some Comparisons

    • F. The Current Reform in France: The “Juppé Plan”

    • G. Concluding Remarks

  • Text Table

    • Financial Position of the Health Care Branch

  • Tables

  • 1. Total Expenditure on Health Care

  • 2. Public Share in Total Spending on Health

  • 3. Growth in Per Capita Health Spending, 1980–92

  • 4. Volume Growth of Health Outlays in France

  • 5. Price Increases of Health Services in France

  • 6. Breakdown of Health Expenditure

  • 7. Health Status and Outcome Indicators, 1992

  • 8. Studies of the Association Between National Income and Health Care Spending

  • 9. Effect on Health Spending of Changes in Age Structure

  • 10. Public Expenditure on Health

  • 11. Hospital Care Statistics, 1990

  • Boxes

  • 1. Global Hospital Budgets

  • 2. Controlling Physician Spending

  • 3. Efficiency in Health Care

  • References

  • II. Social Security, Tax Reform, and Unemployment: A General Equilibrium Analysis

    • Executive Summary

    • A. Introduction

    • B. The Model

    • C. Simulation Results

    • D. Alternative General Equilibrium Results

    • E. Conclusion

  • Tables

    • 1. Response to Employer Social Security Tax Reduction Without Offsetting Tax Increases

    • 2. Response to Employee Social Security Tax Reduction

    • 3. Response to Employer Social Security Tax Reduction with Offsetting Tax Increases

    • 4. Sensitivity Analysis: Effect of a 1 Point Increase in Employer Social Security Tax

    • 5. Long-Run Effect of Employer Social Security Tax Reductions in Various Models

  • Appendix I The Simulation Model

  • References

  • III. Monetary Transmission

    • A Introduction and Overview

    • B Survey of the Literature and Topics on Transmission Channels

    • C The Impact of Interest Rates on the Economy

    • D The Role of the Credit Channel

    • E Conclusions

  • Charts

  • 1. Cumulative Output Loss from a Half Percent Increase in Interest Rates

  • 2. Effect of an Increase in the German Interest Rate on Output

  • Appendix I Impulse Responses

  • Appendix I Charts

  • Al. Impulse Responses

  • A2. Results of a “Structural” VAR

  • References

  • IV. Recent Problems and Current Policy Issues in the Banking Sector

    • Executive Summary

    • A. Introduction

    • B. Structure, Performance, and Regulation of the Banking Sector

    • C. Recent Banking Problems

    • D. Response of the Authorities

    • E. Current Policy Issues

  • Appendix I Structure of the Banking Sector

  • Appendix II Medium-Term Issues in the Banking Sector

  • Tables

  • 1. Credit Institutions by Type and Class of Ownership

  • 2. Concentration in the Banking Sector

  • 3. The Largest Banks, 1994

  • 4. Net Foreign Direct Investment in the Banking Sector

  • 5. Profitability of Major International Banks in 1994 and 1995

  • 6. Selected Indicators of Performance of Banks

  • 7. Bank Restructuring: Employment and Staff Costs

  • 8. Branch Networks and Workforce of Banks

  • 9. Performance of French Banks

  • 10. Purchase Price of Offices

  • 11. Costs of Public Rescue Operations Relating to Financial Institutions

  • 12. Real Estate Loans (at end-1995), Nonperforming Loans (NPL), and Banks’ Assets

  • 13. Selected Performance Indicators of Financial Institutions

  • 14. Performance Indicators by Type of Bank

  • 15. Funding and Lending Indicators

  • 16. Bank Restructurings (1993–96)

  • 17. Ownership Structure and Cross-Shareholdings of Selected Financial Institutions

  • Charts

  • 1. Employment in the Banking Sector (AFB Banks)

  • 2. Growth and Real Interest Rates in Europe

  • 3. Selected Economic Indicators

  • 4. Short-Term Interest Rates and Lending Margins

  • Boxes

  • 1. Key Features of Liberalization of the Banking Sector in France

  • 2. Lending to Small Enterprises

  • 3. Savings Instruments: General Features and Collection Privileges

  • 4. The Crédit Lyonnais Restructuring

  • 5. Cross-Shareholdings and Other Aspects of Capital Structure in the Banking Sector

  • References

France: Selected Issues
Author: International Monetary Fund