The savings of the French must be intermediated

French savers have high risk aversion and strong demand for security for their savings. But the French economy needs risky financing: since savers do not want to hold risky financial assets, the financing of the French economy must be intermediated by: Banks that transform risk-free deposits into risky loans; Organised financial intermediaries to reduce the risk linked to holding of equities or corporate bonds (for example, there is a need for a life insurance contract that is far more invested in equities than the current funds in euros). We must therefore keep in mind that as long as savers have high risk aversion, the financing of the French economy must be intermediated.