, it was a joke ). as with other industries, i believe that innovation and competitiveness should be encouraged in finance. since the first commodity derivatives markets were created in chicago, market innovation has more often than not proved useful to the real economy, notably enabling companies in the real sector to better manage their risks. however, given that excesses in finance have more potential than in any other sector to damage the broader economy, financial innovation needs to be closely controlled. • to conclude, a great deal has already been achieved since 2009 to tighten control of the financial industry, and ensure that it fulfils its vital role in serving the economy without destabilising it. but there is still a lot of work underway that needs to be completed. i ’ m thinking in particular of work in those sectors where regulators have less influence than over banks : shadow banking, hedge funds, tax havens or rather regulatory havens. i am sure that the discussions in this session will help to give us some ideas. bis central bankers ’ speeches

christian noyer : the end of the financial dictatorship? introduction by mr christian noyer, governor of the bank of france and chairman of the board of directors of the bank for international settlements, to session 5 “ the end of the financial dictatorship? ”, aix - en - provence economic forum, aix - en - provence, 6 july 2013. * 1. * * firstly, is finance really a dictatorship? this question isn ’ t new : already petronius, in roman times, at the start of our modern era, asked : “ what use are laws when money is king? ” the question seems rhetorical, and you can sense in its resignation that the latin writer ( who, incidentally, was born in the nearby city of marseille ) was already worried about the difficulties of establishing the primacy of politics over finance. i ) it is true that the world of finance does have considerable powers : • the power to create and support economic development. in its most traditional forms, this is finance ’ s most crucial role – and power : it is an essential cog in the wheel of economic activity, allocating capital, supplying credit and enabling the management of risk. more than just “ the sinews of war ”, it can be seen as the lifeblood flowing through our veins. • but also a highly destructive power : it was the unchecked sophistication of finance and the excesses this caused that lay behind the 2007 - 2008 financial crisis, a crisis that subsequently transformed into an economic, social and political crisis. limited losses on subprime loans ultimately led to the destruction of millions of jobs throughout the world, and the links between finance and the real economy were cruelly laid bare. ii ) but finance can certainly not be considered “ all powerful ” : in my opinion, the world of finance only has the political power that state governments choose to give it. • granted, the difficulties some countries were facing, notably in the euro area, were exacerbated by financial market pressures – think back to the attacks on italian debt in the summer of 2011. but if the markets were able to exert this pressure, it was because those countries had, in a sense, put themselves at their mercy by demanding that they finance their ever - expanding public deficits, even during periods of growth. • in nearly all the crises faced by the euro area since 2009, it is true that market reactions were often brutal and even extreme. but these reactions were frequently