pursuing efforts to strengthen the resilience of the financial system by preparing for and implementing new regulations the international financial regulatory framework evolved substantially in 2012, and will continue to do so in 2013. it is therefore particularly important to adapt to these changes. 2. 1 the insurance sector must continue, in france and europe, to prepare itself for the application of the new prudential regime, solvency ii admittedly, 2012 was marked by tough discussions about the omnibus ii directive and in particular the question of the treatment of insurance products with long - term guarantees. these discussions were unfruitful and will delay the entry into force of solvency ii. however, a positive signal was sent thanks to the agreement reached between the eu council, the european parliament and the european commission at the end of december on the terms of reference of the impact study on long - term guarantees. this study will give impetus to the discussions and i count on the contribution of the institutions chosen by the acp. insurance companies must take advantage of the extra time before solvency ii comes into force : in coordination with eiopa at the european level, we consider that it is already possible and necessary to make use of certain definitive elements in the solvency ii directive, in particular concerning governance and the orsa ( pillar 2 ), and reporting to the supervisory authority ( pillar 3 ). bis central bankers ’ speeches 2. 2 in the banking sector, credit institutions must continue strengthening their solvency – a process that is already well underway – and they must intensify their initiatives to adapt to future regulations concerning liquidity. the prudential supervisory authority has organised a series of meetings designed to familiarise the french financial sector with the changes resulting from the implementation of the basel 3 reforms. in terms of liquidity, the coverage ratio ( lcr ) is now stabilised. in my new year address of january 2011, i said that the work on liquidity ratios was unsatisfactory and that it clearly needed to be reviewed. this has now been done. in order to counter the fears of the recessionary impact on loan distribution that the first version of the text might have prompted, a transition phase has been introduced to give banks more time to conduct their adaptations. moreover, the calibration of the liquidity requirements has been refined to better reflect experiences of the crisis, while the list of assets that can be held to satisfy the liquidity requirements has been extended. even if adjustments are still possible in the framework of

christian noyer : new year ’ s wishes to the paris financial community mr christian noyer, governor of the bank of france and chairman of the board of directors of the bank for international settlements, presents his new year ’ s wishes to the paris financial community, paris, 21 january 2013. * * * ladies and gentlemen, i would like to start by extending my warmest wishes to you, your colleagues and your institutions for 2013. admittedly, 2012 was a difficult year, but it was above all a fruitful year that marked a turning point in the euro area crisis. crucial decisions were taken, providing lasting solutions to enhance and safeguard the functioning of our monetary union : the implementation of the european stability mechanism ( esm ) ; the treaty on stability, coordination and governance ; the new agreement on greek debt ; and lastly, the banking union agreement, on which i will speak in greater depth. this progress was achieved through a collective effort : the ecb and the eurosystem played a decisive role in restoring confidence, thanks especially to a new and particularly powerful tool : outright monetary transactions ( omts ). today, there are no longer any doubts about the irreversibility of the euro. at the national level, countries have shown that they were capable of taking all possible measures to reduce their deficits and to put their public finances on a sustainable footing while undertaking the structural reforms necessary for a return to growth. i hope that 2013 will be the year in which this progress is consolidated and built upon. today, i would like to give my views on the challenges that lie ahead this year. i believe that the four main challenges are to : • adapt to an environment that is still changing rapidly ; • resolutely pursue efforts to strengthen the resilience of the financial system by preparing for and implementing new regulations ; • further improve the competitiveness of the paris financial centre ; • continue to support the economy by ensuring the best possible financing conditions. 1. a rapidly changing legislative and regulatory environment first, your working environment will continue to evolve rapidly, in terms of both international financial regulation and france ’ s legislative framework. 1. 1 a few words on the draft banking reform law in france the financial crisis highlighted some major shortcomings of international banking and financial sector regulation as well as the inadequacy of the tools at the supervisory authorities ’ disposal to reduce and address risks. the draft banking reform law reflects the commitment of the president of the french republic to separate activities that are