Financial Repression Tracker

Rules that steer savings into government debt or hold returns below inflation, country by country.

Steer · Captive demand

Treasury-bill floors and coverage coefficients for banks

What it is
An order that each bank keep a minimum portfolio of Treasury bills or short-term government paper, often fixed relative to a base date plus a share of any later deposit growth (France's 'planchers'), or a 'coverage coefficient' tying part of bank liabilities to state paper (Belgium).
Why it counts
Bank deposit growth is automatically recycled into short-term Treasury paper at administered rates, consolidating floating debt and guaranteeing take-up of new bills.

When it was in force

  • France: 1948, historical; its end is not documented
  • France: 1948 → 1967, historical
  • Belgium: 1956, historical; the rule may be older than the cited document; its end is not documented

3 examples

  1. France

    1948Historical

    Its end is not documented · As cited: 1948-

    From 1 October 1948 each bank had to keep Treasury paper equal to 95% of its 30 September 1948 holdings, increased by 20% of any later growth in its liabilities.

    Banque de France / Conseil national du crédit: instruction annexed to the Governor's letter of 30 September 1948 (minimum portfolio of 'valeurs du Trésor', the 'planchers')Secondary source
    “Pour chaque banque, ce portefeuille minimum doit être égal à 95 % de son portefeuille en valeurs du Trésor, arrêté à la date du 30 septembre 1948”

    nbb.be (opens in a new tab)Checked: quote matched on the page by script

    France today: index 54.6

  2. France

    1948 → 1967Historical

    As cited: 1948-1960s

    Sociologist Benjamin Lemoine describes the floors as forced bank subscription of Treasury bills, from 1948, that had to rise in proportion to deposit growth; the system was relaxed and then abolished in the early Fifth Republic as the circuit was dismantled from the 1960s.

    Système des 'planchers' de bons du Trésor (post-war circuit du Trésor)Secondary source
    “Le système dit des « planchers » contraint en effet les banques, à partir de 1948, à détenir dans leurs portefeuilles une proportion conséquente de bons”

    laviedesidees.fr (opens in a new tab)Checked: quote matched on the page by script

    France today: index 54.6

  3. Belgium

    1956Historical

    The rule may be older than the cited document · Its end is not documented · As cited: 1956 (in force)

    Belgian banks were subject to legal coverage coefficients obliging them to hold state paper; the Finance Minister told the committee this did not harm private investment because in practice banks held state funds well beyond their legal obligations.

    Coefficients de couverture imposed on Belgian banks, as discussed in the Chamber Finance Committee report on the 1956 Finance Ministry budget (28 February 1956)Primary source
    “Au sujet des coefficients de couverture imposés aux Banques, le Ministre fait remarquer que le concours apporté par celles-ci au financement de la trésorerie de l'Etat”

    lachambre.be (opens in a new tab)Checked: quote matched on the page by script

    Belgium today: index 44.0

Examples and their dates reviewed .

Further reading

12 more on captive demand