While they can certainly be included in the category of universal banks, this classification, which has the merit of highlighting their diversification, also blurs their distinguishing features in times of crisis.
Three factors differentiate French banks. First, the contribution of retail banking to their net income is slightly more than the world average of 57% in 2007. Some other European banks, in Spain or Italy, are certainly more retail-oriented but the French model is more stable as it is based on fixed-rate mortgage loans, and hence, amply protected margins. This financing model is less vulnerable to bubbles than other countries, making French retail banking more resistant in times of crisis.
