PARIS, March 13 (Reuters) - France’s financial stability council is ready to take action to curb excessive corporate borrowing but will stop short for now of requiring banks to hold extra capital to cover their exposure, it said on Tuesday.
The council, which includes the finance minister and central bank governor, said in a statement after its quarterly meeting that it was monitoring the situation closely.
France’s financial stability council has been concerned about record levels of private debt and heavy borrowing by large companies that are financing themselves at rock-bottom rates on the bond market.
The council said in December that it could impose a counter-cyclical buffer on banks, effectively requiring them to hold extra capital against their risks, if corporate borrowing did not slow this year.
Officials said there had been serious discussion on Tuesday about imposing the buffer. (Reporting by Leigh Thomas and Myriam Rivet Writing by Bate Felix Editing by David Goodman)
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