companies, the latest figures at end - november are + 4. 9 %, compared with + 2. 2 % in the euro area. credit to households increased too in 2016, by + 4. 2 %, compared with + 1. 9 % in the euro area. and this credit expansion has been accompanied by some of the lowest interest rates in europe. 2 / 3 bis central bankers'speeches the strength of french banks and insurance companies has been confirmed. on the insurance side, the solvency of the french market is largely met, with a solvency capital requirement ratio ( scr ) of 209 % for groups and 222 % for individual institutions on 1 january 2016, compared to the regulatory minimum of 100 %. as regards banks, the major groups show prudential ratios well above the minimum requirements, with in particular an average cet1 solvency ratio ( “ full crd4 ” ) of 12. 7 % at end - june 2016, which is more than twice that of 2008 ( 5. 8 % ). elsewhere in europe, in particular in italy, certain banks still show difficulties : these problems are manageable but urgent action is required. fortunately, this feeling of urgency seems at last to prevail. for the smooth financing of our economy, 2017 requires that action be taken in five priority areas : basel 3. thanks to our unwavering mobilisation and that of our european partners, we have already avoided a bad agreement as it stood out last summer. to move things up a gear, it would now be necessary, in the weeks or months to come, to conclude a good agreement. international cooperation in the field of financial regulation must remain a collective asset on both sides of the atlantic. complete the banking union, based on the reform package presented by the european commission last november – especially on the resolution side. these proposals are generally good ones. the banking union must now lead to more cross - border consolidations within the euro area : larger european banks will be able to better steer savings across national borders towards investment needs. better steer french savings towards companies and innovation. for the past year, we have reformed regulated savings in order to avoid excessive benefits and to adjust them to the low rates : with the reduction in the housing savings plan ( pel ) rate, the end of the overindexation of the a passbook ( livret a ), and calls to moderate life insurance yields. in addition, it is desirable today that the professionals that you are

francois villeroy de galhau : prospects, challenges and promises new year wishes to the paris financial centre new year wishes to the paris financial centre by mr francois villeroy de galhau, governor of the bank of france, 12 january 2017. * * * i would like to welcome you all, our partners throughout the year – public officials, financial and economic players, journalists – to this magnificent golden gallery for this happy tradition of extending new year wishes to the paris financial centre. i would like to start by extending to you, on behalf of the whole of the banque de france and the acpr, our warmest wishes for 2017, for you and your loved ones, as well as for all of your staff. to these personal wishes, i would like to add several collective wishes this evening : first for europe and its economy, then for our country, and finally for the smooth financing of our economy and for financial institutions. 1. for europe and its economy a year ago, i had noted with you that 2016 had begun as the year of volatility, with the turbulences in the financial markets. in fact, 2016 was rather the year of uncertainty, with the brexit victory in june, the american election in november and the italian referendum in december. however, despite these uncertainties, 2016 was marked by a certain degree of stability in europe : euro area growth, which was at first fragile at the beginning of the year, strengthened and financial markets proved resilient in the face of the different shocks. for 2017, of course, none of these uncertainties have been lifted and others will be added to the list : 2017 is an election year in the netherlands, france, germany and possibly italy. nevertheless, the euro area can count on four points of reference : economic growth, which promises to be robust ; in the eurosystem, it is expected to stand at 1. 7 %, as in 2016. the gradual rise in inflation. this should not be a surprise, for several months the eurosystem has been repeatedly announcing the crossing of the 1 % threshold : at enddecember, inflation rose by 1. 1 % in the euro area. this is partly due to the rebound in energy prices, but it is also the result of our non - standard monetary policy ; we have been able to avoid the deadly danger of deflation that was creeping up on us. on the contrary, there now seems to be concerns about a “ return of inflation