the total repayment by households stock represented 12

The Government is preparing to adopt today, new provisions on the binding mode of the interest rate ceilings (famous wear rates) for consumer credit. Few households know but the interest rates charged by credit institutions are strictly governed by these maximum rates on a quarterly basis defined by the France Bank. Therefore, property of a control of prices which has the effect of ration demand. For each category of loans (in particular the depreciable loans and renewable credits), credit institutions that use the less risky borrowers category, being in the inability to compensate for a higher interest rate itself higher risk.

In the present situation marked by a strong recession and a rapid increase in the unemployment rate, is understood by the pro-cyclical nature of this Regulation: banks, unable to make the regulatory risk taking, used a very special customer profile: whose revenues are significant and stable. Exit the young entrepreneurs, employees in CSD or temporary workers! We note also that the consumer credit is, in France, very poorly developed. At the end of the first half of 2008, the outstanding amount (i.e. the total repayment by households stock) represented 12.8 of consumption. This figure amounted to the same date to 15 in the euro area and 16 in the European Union. In addition, contrary to a commonly held idea, the place of (particularly suited for small loans) renewable credit has declined significantly in recent years, passing based on figures from the Bank of France of 27 of the total outstanding of consumer 15 years 20 today. From some of its neighbours, the France private therefore favourable to growth tool.

This is why can only worry about a reductionist approach that burdening regulation wear for certain types of loans (renewable credits are clearly in the sights) would be likely to lead to a decline in the rate to the consumer. This idea is based on a central error of reasoning: the thinking that by lowering the ceiling rate, it decreased at the same time the average rate. In reality, as each time we fixed maximum prices, does that exclude a greater part of the applicants of the market, and it creates a parallel market which is beyond him, to any control. By reducing the wear on the revolving credit rates, it will not only exacerbate the problems of access to credit, already important in France. It also takes the risk to see developing circuits from particular to particular outside funding for the blow of any regulation. The idea that credits will be more given on the segment of the renewable will be in personal loans is specious, insofar as these products are distinct, and render a service to the different consumer. In reality, the level of interest rates charged to consumers does not depend on the ceiling but the level of competition. Evidenced by the cases of the Germany or the Denmark: charged rates are low while the Act does not rate ceilings set.

Are we reply that the decline in the rate of wear on certain types of loans should fight against overindebtedness. It is mistaken to two titles. On the one hand, according to figures from the Bank of France, overindebtedness originated essentially in an accident of life, namely, job loss, divorce or illness. The only credit excesses explains that 14 of the cases of over-indebtedness, and this rate is in decline for several years. On the other hand, it is absurd to reduce overindebtedness by reducing access to credit and, in passing, by sacrificing economic growth, i.e. by further increasing unemployment.