. however, we must not be complacent. we must not underestimate the recent increased financial market volatility. we must not take the oil shock or the inflation pressures lightly. we must not ignore the imbalances that are being generated by the aging population. we must not think that the resistance to globalization will just fade away. we must not conclude that terrorism is someone else ’ s problem and therefore it will not affect us. we must not imagine that global warming will impact only a few coastal nations and therefore we will be safe from its effects. in contrast, we must anticipate the threats and prepare ourselves to face it with confidence. needless to say, if these challenges are not adequately addressed, or faced directly, the fall out could result in serious repercussions that will greatly hamper the continued success of the current expansion. mr. chairman, another interesting phenomenon is that, while most countries seem to be growing well at the aggregate level, there are also growing concerns about the equitable distribution of these gains. it is clear that rapid technological progress and continuing globalization of trade and finance have helped to enhance growth and reduce poverty. but the same conditions are also contributing to increasing the concentration of income and wealth, within certain selected groups. in general, owners of capital and scarce skills have been well rewarded, while, less - skilled workers and those with limited access to jobs or finance have enjoyed limited gains. while it is obvious that such an outcome poses serious political risks, even from an economic point of view, inequality raises an economic issue since it implies that human resources are not being productively used. therefore it follows that, unless this imbalance is addressed, it would probably manifest itself in dangerous political upheavals, which could easily negate the economic gains that may have been so painstakingly built up. in recent years, the global expansion has been supported by the ready availability of external financing at relatively reasonable interest rates. credit has been readily available, particularly as a result of innovations in financial market instruments which were supposed to have improved liquidity and distributed risk better. but those innovative models are today facing increasing pressure, and economic planners are in the process of re - thinking these processes. therefore, in the near future another serious issue that we may have to face in our effort to achieve sustainability in our growth momentum would be that, over time, global savings may well become more scarce, putting upward pressure on real interest rates. mr. chairman

francois villeroy de galhau : financial stability in the age of digital industry introducing speech by mr francois villeroy de galhau, governor of the bank of france, at the paris europlace international financial forum, new york city, 18 april 2016. * * * ladies and gentlemen, i would like to introduce this third round table by presenting the latest issue of the banque de france financial stability review entitled “ financial stability in the digital era ”. this new edition of the fsr addresses a very topical issue in the financial world, the impact of digitalisation and how to regulate such changes where necessary. i am keen to hear today ’ s exchange of views. in this fsr, we have gathered contributions from prominent academics, practitioners and policy - makers in order to shed light on the impact of innovation on financial stability. i would like to express my sincere thanks to all the contributors who have provided their views and analyses on such a technical and forward - looking topic. i cannot list all the contributors just now but i would like to give a special mention to ms karen gifford who is with us today. the contributions presented in the fsr are very diverse in nature. the aim of the fsr is to help readers form an opinion ; it is not designed to convey the explicit message of the banque de france. the core aims of our review are to exchange ideas, explore a given theme from various angles, and juxtapose different analyses and opinions. i hope this new edition will be appreciated as much as, or even more than the previous ones. before we start the discussion, let me briefly share with you some personal thoughts on this subject. the digitalisation of financial services is clearly a fascinating subject. it is also an issue that is particularly relevant at the moment, as the emergence of digital technologies is coinciding with a period of burgeoning recovery. the fact that regulators, and notably the banque de france, are turning their attention to these issues should come as no surprise. it is our responsibility, as central bankers and regulators, to strike the right balance between the obvious benefits that digital innovation can bring to the financial sector, and the need for an adequate framework to mitigate risks and guarantee financial stability. the search for this subtle balance can best be represented as a trinity comprising innovation, stability and regulation. we are thus facing a form of “ trilemma ”, and our role is to build a “ possible trinity ”. 1. with regard