informed. the page 6 of 8 acpr recently conducted a study to compare the features of the different products available : fees, returns, type of underlying assets offered on unit - linked contracts. the results, which show that the current offering needs to be simplified and that we need to think of ways to better share the returns, will be discussed this summer with insurers ; we will publish the findings by next autumn, along with the measures chosen in our talks with the industry. insurers deserve fair remuneration for the technical work that goes into marketing and managing life insurance products : but fair also means open, and technical should not also mean opaque. among the structural challenges facing the financial sector, there of course remains the issue of climate change. after the pioneering pilot exercise conducted by the acpr in 2021, we now need to make these climate stress tests compulsory – as is already the case for banks supervised under the single supervisory mechanism – and carry them out very regularly both for banks and insurers. once the methodology has been refined – and only then – we will be able to draw the appropriate conclusions in terms of capital requirements, starting, as is logical, with pillar 2. iii iii. the financial system and acpr will need to be mobilised on several fronts to tackle the consequences of the war in ukraine first, we are paying very close attention to the potential fallout of the russiaukraine conflict for financial stability : for the time being it remains limited. the direct exposure of the french financial sector to russian assets is contained : the liabilities of french banks vis - a - vis russian banks account for less than 1 % of their total international liabilities, and french insurers ’ investments in russian securities amount to just under eur 500 million. the withdrawal from investments in russia was admittedly tricky, but orderly. the conflict could have more of an impact via indirect channels, including the strong tensions in global commodity markets. for the time being, the consequences of these market movements on the french banking sector have been kept under page 7 of 8 control. however, the acpr remains fully mobilised in monitoring any potential financial risks that might emerge. more broadly, the macroeconomic and financial environment has evolved significantly since last year, and the ukraine conflict has exacerbated the inflationary pressures that were already visible at the end of 2021 : we are naturally keeping a very close eye on this, like our fellow citizens. the latest inflation figures for may, for france and

presentation of the 2021 annual report of the autorite de controle prudentiel et de resolution ( acpr ) press conference, 31 may 2022 speech by francois villeroy de galhau, governor of the banque de france chairman of the acpr press contact : mark deen ( mark. deen @ banque - france. fr ). page 1 of 8 ladies and gentlemen, i am very pleased to welcome you to our presentation of the annual report of the autorite de controle prudentiel et de resolution ( acpr – prudential supervision and resolution authority ), in the company of jean - paul faugere, vice - chairman of the acpr, dominique laboureix, secretary general of the acpr, and alain menemenis, president of the sanctions committee. last year was marked by a vigorous recovery of our economy, during which our financial sector proved particularly robust ( i ). 2022 should now see substantial advances on the regulatory front ( ii ). however, the war in ukraine is posing new risks to the financial sector, calling for heightened vigilance ( iii ). in all these situations, the women and men of the acpr have worked tirelessly to ensure that the french financial system remains resilient under all circumstances, providing adequate financing to the economy. i would like to extend my warm thanks to them. * * i. the strength of the french financial sector is more than ever an asset for our economy i shall start with just a short word on the situation for insurers, which jean - paul faugere will go into in greater depth. in the context of the economic recovery in 2021, the insurance sector saw a return to growth in all its activities : net inflows increased by 18 % compared with the previous year. this allowed insurers to consolidate their solvency, with the average solvency capital requirement ( scr ) coverage ratio rising to 253 % after the slight decline seen during the covid crisis. page 2 of 8 french banks in turn saw a “ return to normal ” in 2021 in terms of dividend payouts, which was completely justified. their solvency ratio, which was already solid, increased even further over the year, reaching 16 % for the top six french banking groups. their profitability also improved ( their roe stood at 7. 1 % at end - 2021 compared with 4. 6 % a year earlier and 6. 4 % in 2019 ) : it