France’s Prudential Supervision and Resolution Authority (ACPR) stated that surging government bond yields will not threaten banking stability, citing limited exposure to domestic public debt. Secretary General Emmanuelle Assouan confirmed regulators are reassured regarding sovereign spread movements, noting that French banks maintain diversified portfolios with constrained holdings of state debt. According to ACPR data, French banks held approximately €190 billion ($213 billion) in domestic public debt in 2025, representing just 24% of their sovereign bond holdings and 2% of total assets. This assessment comes as investor attention focuses on France's public finances amid government efforts to reduce the fiscal deficit and ongoing student protests over education spending.