IMF reports show French and German banking sectors are key to European stability


The IMF has called on French regulators to do more to reduce banks' dependency on wholesale funding, while warning that waning depositor and creditor confidence in Germany - owing to a "mutually reinforcing" combination of low growth and an unsettled financial regulatory framework - could trigger contagion beyond the country's borders.

In back-to-back staff reports published yesterday and today following the IMF's annual Article IV consultations, the fund urged France to do away with regulated i

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