Bank of France plays down impact of market turbulence on economy
PARIS (Reuters) - Bank of France Governor Francois Villeroy de Galhau said on Wednesday that the French economy was not affected by recent market turbulence as it was driven by solid internal demand.
Banks were prudent enough in their exposure to oil and gas, he said.
French banks, along with European peers, had a rough start to the year as falling oil prices and worries about slowing growth in China contributed to weakness in credit markets.
"They (French banks) have a more prudent approach than banks on average and are little exposed to the most indebted companies that are sensitive to falling oil prices," he said on BFM Business radio and TV.
Asked about the possible impact on the French economy of the slide of asset prices on financial markets in recent weeks, Villeroy de Galhau said there was no reason for fear.
"The French economy is driven by an internal engine, first and foremost by household consumption," Villeroy de Galhau, a former executive at French bank BNP Paribas , said.
Villeroy de Galhau, who also sits on the European Central Bank's governing council, added that the European economy was still in the midst of a firm economic recovery.
(Reporting by Geert De Clercq; Editing by James Regan/Jeremy Gaunt)
