Banque de France - Autorité de Contrôle Prudentiel Relevance of liquidity regulation and impact on business models Frédéric VISNOVSKY Deputy general secretaryMay , Château de Montvillargenne AFGAP & ALMA International Conference 2012
Banque de France – Secrétariat général de la Commission bancaireBanque de France – Autorité de Contrôle Prudentiel
Banque de France – Secrétariat général de la Commission bancaireBanque de France – Autorité de Contrôle Prudentiel Relevance of liquidity regulation A)European regulators have learnt common lessons from the crisis B)Despite a single objective, some differences of analysis exist between regulators C) Differences are expressed in the current discussions on the LCR under way at BCBS and EU levels
Banque de France – Secrétariat général de la Commission bancaireBanque de France – Autorité de Contrôle Prudentiel 2 2. Impact on business models A)Banks need to adapt their business models
Banque de France – Secrétariat général de la Commission bancaireBanque de France – Autorité de Contrôle Prudentiel 3 B)Deleveraging must be addressed carefully Exhibit 1 Deleveraging pressures and means to accommodate them
Banque de France – Secrétariat général de la Commission bancaireBanque de France – Autorité de Contrôle Prudentiel C) The important role of bank and insurance undertakings in the management of long term savings and the funding of the economy 4 2 – Cumulated flows – Life Insurance All the market Bank insurance 1 – Financial assets - Households (Billions euros) Oustanding amounts Investment flows end % 34 % 20 % 7 % Source : Banque de France Source : Autorité de contrôle prudentiel