The French government is to inject 10.5 billion euros into the country's six largest banks.
The announcement was made by Finance Minister Christine Lagarde and follows similar moves by other governments across Europe.
The move is aimed both at restoring confidence and liquidity to the banks.
France's largest bank, Credit Agricole, is to get 3 billion euros, while BNP Paribas will receive 2.55 billion euros. Credit Mutuel will get 1.2 billion euros, Caisse d'Epargne 1.1 billion euros and Banque Populaire 950 million euros.
Ms Lagarde said the move was to ensure banks are "able to finance the economy correctly".
She added that the banks simply needed to increase their equity capital in order to give more loans to companies and individuals.
President Nicolas Sarkozy has vowed that no French bank will be allowed to collapse and that savers will not lose "a single euro".