the central bank and territories conference organised by bordeaux sciences economiques & the banque de france 27 april 2023 the banque de france over the years : serving the regions and its inhabitants speech by first deputy governor denis beau dean of the faculty, denis, ladies and gentlemen, thank you very much for inviting me to open this conference – “ the central bank and territories ” – here at the university of bordeaux. we are gathered for a very special occasion, as we are celebrating the 175th anniversary of the banque de france's branch in bordeaux. it was indeed on 27 april 1848, during the “ spring of nations ” described so eloquently by franco - hungarian historian francois fejto, that the principle of setting up a base for the bank in bordeaux was agreed upon. 1 five days later, on 2 may, the branch opened its doors to the public, in the building that formerly housed the banque de bordeaux on rue esprit des lois. 2 it stands there still, a testament to the longevity of its mandates and the continued presence of its employees in the service of france ’ s regions and inhabitants. branches were opened at the same moment in eight other french cities, 3 so expanding the 15 - branch network already in operation. with this, the banque de france became the cornerstone of the monetary and financial system spanning the entire french economy. 4 since the bank was first established in 1800 through to the present day, our core mandate has been to guarantee monetary stability and, through our supervisory, refinancing and lender - of - last - resort policies, to see the decree of 2 may 1848, indicating that the decision of the board of directors of the banque de bordeaux was adopted on 27 april, following the decision by the general council of the banque de france on 24 april. 2 the branch opened its doors with the decrees of 27 april and 2 may 1848. 3 the other branches that opened in spring 1848 were in rouen, nantes, marseille, le havre, lille, toulouse, orleans and lyon. 4 leclercq, yves, 1999, la formation d'une banque centrale : la banque de france ( annees 1830 - annees 1850 ), revue economique vol. 50, pp. 151 - 174 preserve financial stability. by establishing a branch network, we strengthened and enhanced our ability to serve the regional economies. moreover, in each era, the bank has tailored the approach taken to

execute its statutory mandate, catering to the economic and financial environment and the institutions of the time in order to provide france's regions with the best possible support. in the first part of my talk, i will detail how the banque de france, in acting as an institution with a strong regional presence, has tailored its services over time to fulfil its three main policy objectives, which are to guarantee monetary stability, preserve financial stability and provide services to the economy. in part two, i will turn to today ’ s economic and monetary situation and show with our current measures taken to preserve monetary stability, how the fulfilment of each objective is never a given but the result from the committed action by the central bank. * * * * today, just as it has always done, the banque de france offers two main types of nationwide services : first, it guarantees monetary and financial stability, because no economy can work without a stable currency and a stable banking and financial system ; second, it supports local economies through its regional presence, serving households and companies, especially the most vulnerable, and supporting the environmental and digital transitions. let me describe each of these aspects, explaining in each case how the bank of france has adapted over the years to meet the needs of the day. the first broad set of services provided to the regions are focused on delivering monetary and financial stability. this means conducting a monetary policy that guarantees price stability in the medium term, but also supervising the payment system and ensuring the stability of financial intermediaries. maintaining a stable currency safeguards purchasing power over time and ensures the currency ’ s continuity across the territory, so that every individual can spend that currency anywhere and at any time and enjoy the same ability to purchase necessary goods and services. back in the 18th century, france's authorities found themselves unable to guarantee this stability. after the bankruptcy of the john law note - issuing bank in 1720 and several other failed attempts to set up a central bank, 5 the hyperinflation fuelled by monetary financing of the revolutionary wars and the ensuing default on two - thirds of france ’ s public debt in 1797 had destroyed confidence in the currency. 6 the most pressing task facing the consulate government was to rebuild the foundations of that trust, which it did by authorising the establishment of the banque de france in 1800 and anchoring the value of the franc through the creation of the germinal franc in 1803. in establishing the banque de france, france set