France’s private banks widen their nets

FRENCH PRIVATE BANKS have had a challenging year. On the one hand, they have suffered less than many of their European peers because their parent banking groups did not face such severe financial losses during the credit crisis. On the other, however, rumours of the French government cracking down on tax evasion have made French non-residents nervous about the safety and confidentiality of the accounts they hold with French private banks offshore. In August 2009, the government announced that it had obtained a list of 3,000 French citizens that were allegedly hiding money in Swiss bank accounts to avoid paying tax.