Business creations and bankruptcies in France: double-digit growth in business creations, lower growth in bankruptcies, and stable non-performing loans

Eco Charts | Business creations and bankruptcies is a new publication aimed at providing an overview of the dynamics of business creations and bankruptcies in France, as well as the risks associated with the latter. We will publish regular updates to this publication on a quarterly basis.

Double-digit growth in business creations, a slowdown in bankruptcies and stable non-performing loans

• Business creations rose by 12% y/y in the first eight months of 2026, marking an acceleration compared with the growth seen in 2025 (+5.3%).

• This increase was driven by sectors associated with new information and communication technologies, where the trend is gaining momentum.

• Meanwhile, business bankruptcies rose by 5.3% y/y from January to July, according to the data from the Banque de France (vs. +3.6% y/y in 2025). After a more pronounced rise in the first quarter (+8% y/y), this increase has since slowed. This moderation could continue, as, according to Altares, payment delays have decreased to an average of 12.3 days in the second quarter of 2026 (14.1 days a year earlier), compared with the European average of 13.1 days.

• The rise in business bankruptcies is most pronounced in the services sector, which has simultaneously seen an increase in business creations. This trend is clear in the retail sector, with a 13% increase in business creations since the beginning of 2026, while business bankruptcies are up by 3%.

• In construction and manufacturing, business bankruptcies have been declining since the second quarter of 2026.

• The level of the average ratio of non-performing loans is moderately high and has remained stable for the past year (4.0% of total loans and advances in Q2 2026). More cyclical than in other sectors, the ratio of non-performing loans in construction reached its highest level since 2019 at 9.5%.

• The share of underperforming loans, but not yet non-performing (in Stage 2, according to IFRS 9 terminology), which provides an indication of the future trend in non-performing loans, is stable, standing at 15.4% q/q, and remains below its all-time high (16.1%).

• Despite a significant rise since 2021, the economic weight of bankruptcies – which allows them to be weighted by a proxy for company size – remains, on average, below its Q1 2025 peak (0.53 compared with 0.61, respectively). However, the economic weight of bankrupted small businesses stands at a historically high level (2.11).

For more information, please refer to our publication:

Chart of the week | French corporates: peaks in creations put peaks in bankruptcies into perspective. July 22, 2026 – Economic Research – BNP Paribas

Strong growth in business creations, moderate increase in bankruptcies

Sources : Insee, Banque de France, BNP Paribas

Sources : Insee, Banque de France, BNP Paribas

Non-performing loans ratio have remained almost unchanged year-on-year

Source : Banque de France, BCE, EBA, INSEE, Urssaf

Sources