Press release on the 2023 account and annual report

Paris, 15 March 2024

2023 accounts

The normalisation of monetary policy that began in 2022 continued in 2023, with key rates being raised until September as part of the fight against inflation. This resulted in a sharp fall in monetary income, which can be observed in all central banks that have conducted unconventional monetary policies. Indeed, under asset purchase programmes, securities acquired at low – or even negative – fixed rates over long maturities ultimately result on the liabilities side in bank deposits remunerated at the deposit facility rate, which represent expenses for central banks. These expenses rose sharply in 2023 with the successive increases in key rates.

Monetary income thus fell sharply in 2023, dropping to –EUR 14.9 billion, from  +EUR 4.2 billion in 2022, due to the rise in expenses linked to the remuneration of banks’ excess liquidity at the deposit facility rate, which reached 4% in September 2023 and currently remains at this rate. This sharp increase was only partially offset by the increase in income from loans granted to credit institutions at higher rates.

Income from financial assets held for own account was up by EUR 1.3 billion. This increase was due to capital gains of EUR 4 billion on US dollar denominated assets, which were partly offset by a sharp rise in interest paid on deposits from non-commercial bank clients.

Net expenditure from activities remained under control, and below the EUR 912 million ceiling set in the strategic plan: it reached EUR 895 million despite inflation, which raised the cost of operating expenses.

After covering operating expenses, profit before tax came out at –EUR 12.4 billion. This is entirely covered by a release from the Fund for General Risks, which, thanks to rigorous and forward-looking risk management, had received substantial provisioning since 2015. To date, it stands at almost EUR 4 billion. In total, the net profit for 2023 is zero.

The reserves set aside by the Banque de France in previous years should enable it to keep accounts in positive territory over the next few years, without requiring any recapitalisation from the government or recognising negative equity.

The transformation of the Banque de France

Significant productivity gains achieved since 2015 

Since the "Ambitions 2020" strategic plan launched in 2016, and thanks to the sound management of its resources, the Banque de France has reduced its net expenditure from activities by 15% over the period 2015-23, i.e. an annual decrease of approximately 3.9% year in volume terms, and its workforce by 26.5% (i.e. a 3,237 decline in full-time equivalent jobs). The workforce will be stabilised from the end of 2025. At the same time, it has expanded the services it provides to the national community.

New services provided to the community

The Banque de France has made all of its work on climate change a priority. It is one of the founding members of the NGFS (Network of Central Banks and Supervisors for the Greening of the Financial System) and launched the "Climate Change Centre" in 2021. It is adapting monetary policy to climate risks and increasingly encouraging the financial sector to take this risk into consideration (climate stress tests, ACPR's Climate and Sustainable Finance Commission). It is also setting an example itself, having reduced its CO2 emissions by 23.6% since 2019, and aiming to align the equity components of its portfolios with a 1.5°C trajectory by 2025. Lastly, the "climate indicator" for businesses was tested at several hundred companies in 2023, and will be rolled out more widely over the next few years.

In 2016, the Banque de France was made responsible for steering France’s national financial education strategy (EDUCFI). In 2023, this mission was expanded significantly and the "EDUCFI" financial literacy passport was distributed to all 8th grade pupils. 

It is also stepping up its action in support of the economic sector, for example with the opening in the coming months of a "Manager Portal" for business leaders. 

Since 2016, Banque de France VSE-SME correspondents have also been present in each French département to assist business leaders at every stage of their company’s life. Special correspondents dedicated to start-ups have been active since 2020.

A strategy based on our "4As"

In 2023, the Banque de France pursued its efforts in relation to the four strategic focuses it has defined: anchoring price stability, the climate transition, financial stability and resilience; anticipating innovation; accompanying individuals and businesses; attracting talent and further improving working conditions.

• Anchor

As part of its mission to preserve price stability, in conjunction with the Eurosystem, the Banque de France is set to bring inflation down to 2% by 2025. It is reaffirming its pioneering role in the climate transition and guaranteeing the stability of the financial system.

• Anticipate 

The Banque de France is gearing up to anticipate the rapid changes in its environment by investing in technology and data, focusing notably on artificial intelligence and the blockchain in 2023. It is also preparing for and actively participating in financial innovations, in particular the digital euro.

• Accompany 

The Banque de France network offers a complete range of multi-channel services to individuals, in particular the most vulnerable (for example, via the single 34 14 telephone number). It also helps businesses to cope with crises by broadening the range of services offered and facilitating their exchanges with the Banque de France.

• Attract 

The Banque de France is implementing a HR strategy to recognise, value and retain its employees. It also aims to further improve working conditions. It remains attractive and is renewing its recruitment methods. In 2023, it recruited 547 employees through competitive examinations or on contract.