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Booklet A: Five figures for understanding the French juggernaut of savings

Announced in mid-July, the measure got here into impact on Monday 1 August: the Livret A payment went from 1% to 2%, a degree not seen for 10 years. This doubling follows one already made at the starting of the 12 months, a direct consequence of dynamic inflation in current months

That rise ought to proceed subsequent 12 months, Banque de France governor Francois Villeroy de Galhau has already warned, when inflation continues to rise and key charges rise. What provides France’s most well-known savings merchandise an much more central place.

55 million booklets

This is the quantity of French individuals who have a Livret. A holding fee of round 81%, which confirms the dominant place occupied by this product – restricted to 22,950 euros for people – in the savings preferences of the French.

This quantity is far increased than different funding options that the French historically flip to. According to the Cercle de l’Epargne, life insurance coverage, the second most widespread monetary funding in France, was thus held by solely 40.5% of households in 2021.

The Sustainable and Inclusive Development Handbook (LDDS) is a step again. This “little brother” of Booklet A, additionally regulated and benefiting from the identical fee, is much less common: in 2021 solely 35.9% of households had one.

324 billion euros

This is the Livret A excellent quantity at the finish of 2021. If authorized individuals are included, this may enhance to 343.1 billion euros, and that could be a additional enhance of 16.5 billion from the starting of 2022.

Since 2008, Passbook A outstandings have thus multiplied by a little bit over two, which means they now characterize about 40% of whole outstandings of regulated savings merchandise.

In 2021, this quantity is estimated at 291.3 billion euros in comparison with the Housing Savings Plan (PEL), and 125.9 billion euros for the LDDS, lately indicated by the Bank of France. In France’s annual regulated savings report these three merchandise accounted for 89% of regulated savings excellent final 12 months.

24 billion euros

This is the web steadiness of Livret A in 2021, which due to this fact involves inflate the whole excellent quantity. In element, the French paid 225 billion euros into their savings accounts and withdrew 201 billion euros. These actions in each withdrawals and deposits had been increased than in 2020 and better than the common flows noticed since 2009.

Francois Villeroy de Galhau, who spoke about this throughout the annual presentation of the report on regulated savings two weeks in the past, stated these actions will probably be linked to the “post-Covid disruption” in addition to the financial restoration, which has given rise to extra selections on the half of households.

€5,800

That’s the common quantity owed on a Livret A at the finish of 2021, over 300 euros a 12 months. A degree beneath the ceiling of 22,950 euros, however which hides a excessive density: barely 14% of savings accounts have an excellent quantity of greater than 19,125 euros. And they alone characterize about 55% of the whole excellent quantity in savings accounts. Similarly, throughout the well being disaster, the “extra savings” motion arguably targeted on wealthier households.

10.4 billion euros in debt

This is the quantity of loans signed by the Caisse des dépôts et consignations (CDC) for the building of social housing till the finish of 2021. An enhance of 6% in a single 12 months, which enabled 85,300 new constructions. Social housing models and 81,600 will probably be renovated by the finish of final 12 months.

The matter is carefully associated to the assortment of remuneration and Livret A, since the CDC’s savings fund (which concentrates 60% of regulated savings, or about 300 billion euros) is used to refinance these loans.

Nevertheless, the enhance in the yield of booklet A worries the social landlords. In mid-July, the Social Union for Housing warned of rising debt burdens. “A 12 months in the past, the Livret A fee was 0.5%. A quadrupling of this fee will increase the sector’s debt burden by greater than 2.1 billion euros or 10% of the whole rental quantity for the entire 12 months”.

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