PARIS (Reuters) – The Banque de France (BDF) reported on Friday a loss of 12.4 billion euros for 2023 which it fully covered by drawing on its general risks fund.

The increase in key rates since the summer of 2022 has led to a sharp reduction in monetary policy revenues which weighs on the major central banks.

Last month, the European Central Bank (ECB) announced a record annual loss for 2023, of 7.9 billion euros before releasing provisions.

For its part, the BDF highlighted “rigorous and forward-looking management” of its risks which has pushed it to add to its fund for general risks since 2015.

This fund still has, after resuming the provision for 2023, almost four billion euros, indicated the central bank.

“These reserves constituted by the Banque de France during previous financial years will be mobilized to maintain balanced results over the coming years without it requesting recapitalization from the State shareholder, nor displaying capital own negatives,” the BDF said in a statement.

(Written by Blandine Hénault)

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