of the new commission. the ecb will support it, and france will be a committed player. my second prerequisite is the successful implementation of basel iii. it is vital that we do not forget the lessons from the financial crisis, nor break the promise we made in 2017. but this transposition must be fair – naturally involving the united states – and reasonable. the first estimates of capital requirements are premature and do not give the horizon : basel iii will be finalised only in 2027. but our objective and our assessment are crystal clear : basel iii is for all french banks compatible with normal allocations of profits to reserves in the coming years, after distribution ; in no case will it require a dedicated capital increase. ii. taking the digital turn with lucidity we obviously all need to make the digital leap. digitalisation is shaking up the way we live and consume, opening up a world of possibilities for corporates and customers alike. worldwide, it clearly represents both an opportunity and a challenge for banks, as well as for supervisors. the acpr is working actively on these issues. last year, it published a discussion paper on the implications of ai in the financial sector. and this year, we are working with financial industry participants on the implications of ai algorithms in three topics : aml / ctf, internal models and customer protection. beyond incumbents, new players are now becoming increasingly important. fintechs are competing on niche markets. yet they do not have the capital resources to disrupt incumbent banks and can even be acquired by them. on the contrary, bigtechs do have the potential to fundamentally redefine financial intermediation : they have strong brand recognition, a worldwide customer base and privileged access to cutting - edge technologies. this new situation is a major challenge for regulators and supervisors. of course, financial regulation should remain technologically neutral : the basic principle “ same activity, same rules ” still applies. this is a good thing for the level playing field. page 3 sur 5 however, beyond traditional financial regulation, international cooperation should be developed in three areas, three cornerstones of the regulation of digital finance. first, cybersecurity is a sine qua non for a reliable and sustainable digital future. it is a clear priority of the g7 french presidency next week in chantilly. second, regarding data protection, financial supervisors and authorities in charge of privacy have to invent new ways of cooperation to address data issues that have become central to financial services

paris europlace international financial forum – paris, 9 july 2019 new frontiers in finance speech by francois villeroy de galhau, governor of the banque de france press contact : mark deen ( mark. deen @ banque - france. fr ; + 33 6 88 56 54 03 ). page 1 sur 5 ladies and gentlemen, it is a pleasure to be with you today : this paris - europlace international financial forum is more and more “ the place to be ”, as france and paris are increasingly stimulating first - movers in europe. the theme of this forum – “ new frontiers in finance ” – prompts us to look towards new territories that we have to explore and conquer. regarding finance, i will focus on two of them : digitalisation and green finance. but before looking at the future, let me stress two prerequisites for the present. * * i. two prerequisites for the present my first message is to welcome the new european team, nominated in brussels last week, starting with christine lagarde and ursula von der leyen. once again, albeit at the last minute, albeit under the threat of a crisis, europe has proved itself to be decisive and innovative. now, it is time to begin the fundamental work on a true financial eurosystem. let us look beyond brexit, and beyond the somewhat disappointing debates on the euro area budget. the top priority on the european agenda should be a financing union for investment and innovation, which will channel our abundant private savings through a combined banking union and capital markets union. firms need this in order to raise equity and find european venture capital ; keeping a european capacity in investment banking is a strategic imperative. financial players need this in order to conduct cross - border mergers : european banking consolidation is overdue, and it is indispensable, not to reduce competition – quite the opposite – but to reach the critical mass necessary to make digital investments and allow savings to circulate. and, lastly, the euro area needs it in order to finally have an effective economic stabilisation tool to weather the shocks affecting some countries : “ private risk sharing ” is effective between states in the united states. if one doesn ’ t want a fiscal union – duly noted –, one must make even more resolute progress on the capital markets union. we have talked enough about this, and it is now time to take concrete page 2 sur 5 measures : this must be the ambition