The French government is to inject €10.5bn (£8bn) into France’s six largest banks in a bid to shore up their balance sheets and ensure they continue to provide credit to consumers and businesses.

The move was indispensable if banks were to be “in a position to properly finance the economy”, said Christine Lagarde, finance minister. Until last night, France’s banks had given no indication they were interested in accessing a €40bn recapitalisation fund unveiled last week.

But Ms Lagarde said Crédit Agricole would receive €3bn, BNP Paribas €2.55bn, Société Générale €1.7bn, Crédit Mutuel €1.2bn, Caisse d’Epargne €1.1bn and Banque Populaire €0.95bn.

Financial TimesFrance in €10.5bn top six bank aid

The French government is to inject €10.5bn (£8bn) into France’s six largest banks in a bid to shore up their balance sheets and ensure they continue to provide credit to consumers and businesses.

The move was indispensable if banks were to be “in a position to properly finance the economy”, said Christine Lagarde, finance minister. Until last night, France’s banks had given no indication they were interested in accessing a €40bn recapitalisation fund unveiled last week.

But Ms Lagarde said Crédit Agricole would receive €3bn, BNP Paribas €2.55bn, Société Générale €1.7bn, Crédit Mutuel €1.2bn, Caisse d’Epargne €1.1bn and Banque Populaire €0.95bn.

Financial Times