to finalise and stabilise basel iii, not to open a new basel iv. the insurance sector has not been left out. the entry into force of the european regulatory reform solvency 2, also on 1 january, marks a profound break. we all know that “ solva 2 ” may still be improved ; but it is a significant step forward. in this respect, it is important that all institutions continue their efforts to improve governance and enhance the quality of estimates and data submitted to supervisors, in order to ensure an adequate monitoring of risks, in bis central bankers ’ speeches particular those linked to the persistence of very low interest rates. at the international level, other challenges lie ahead, notably the definition of systemic groups – it must be similar on both sides of the atlantic, like you i am sensitive to this –, harmonised capital requirements and resolution strategies. however, the soundness of the financial system does not depend solely on prudential regulations. it also depends on the confidence that economic players and the public, households and businesses, have in their financial system. in this respect, the efforts of financial institutions to protect their clients are essential. in 2016, what is needed is a firm implementation of the eckert law on dormant bank accounts and unclaimed life insurance policies, and greater freedom of choice of loan insurance on real estate loans. and, of course, more than ever, we need to step up the fight against money laundering and terrorist financing. new measures have already been taken, some are being strengthened. i expect from financial institutions – both insurers and banks – an exemplary participation in this fight. i know that they fully agree to the principle, but they must now carry it through in their daily management ; it is in your interest as compliance risk has become as vital, as strategic, as credit risk. may your institutions be strong on both fronts ; may our country be as involved in the economic battle as in the fight against terrorism, with the contribution of all of us ; and may each one of you remain vigilant and active, yet as serene as possible in 2016. thank you for your attention. bis central bankers ’ speeches

francois villeroy de galhau : challenges for france ’ s economy and financial sector in 2016 new year address by mr francois villeroy de galhau, governor of the bank of france, paris, 18 january 2016. * * * ladies and gentlemen, thank you for coming here today to this magnificently restored golden gallery. this is the first time that i am giving this address as governor of the banque de france, but it is an auspicious tradition that brings us together. i would like to start by extending my warmest wishes to you, your colleagues and your institutions. 2016 has already been marked by volatility : weak financial markets and commodity prices, from china and the middle east ; political uncertainty in europe, in southern europe, in eastern europe, north - western europe with the british referendum, and even in central europe with the refugee crisis. it is our duty to be vigilant, but we must also, on the one hand, distinguish real information from background noise and real challenges – and there are no shortages of them – from the sensational and sometimes excessive statements at this start of this year ; on the other hand, in the face of current volatility, we must stick to our mediumterm objectives. this evening i will not discuss the eurosystem ’ s monetary policy as we are in the “ silent period ” leading up to the governing council meeting this thursday. such longterm strategies also apply to the reforms in europe and in france. i would like to broaden my personal wishes to three collective wishes : for our country and its economy first ; for its smooth financing second ; and for financial stability and the soundness of your institutions lastly. 1 ) today a confirmed recovery is underway, with growth of over 1 % in france in 2015, and 1. 5 % in the euro area. in 2016, despite the uncertainties, all indicators point to higher growth. france must now transform this modest but real recovery into strong, lasting, job - creating growth. to do this, two conditions must be met in 2016 : public reforms must be pursued, and corporate investment must be stepped up. as regards the reforms, france is currently being penalised by excessive debt levels in its public sector ( differential of 25 % of gdp vis - a - vis germany, whereas both countries displayed the same level in 2010 ) and the deterioration in its trade balance and competitiveness. the fight for growth and against unemployment can only be won over time,