##plates, while keeping their resources in the united kingdom. i fully agree with eiopa that vigilance is called for in this respect. moreover, brexit brings with it certain risks, and consequently the need for contingency plans. i am thinking in particular of the european policyholders who took out insurance directly with british undertakings and who should continue to benefit from the same protection. eiopa, in liaison with the british authority, has rightly made british insurance undertakings aware of the necessity to draw up plans to deal with brexit, irrespective of the fact that negotiations are still underway. this is particularly important to ensure that brexit takes place as smoothly as possible, with limited effects for policyholders. for the future however, it is worth considering the need to adjust the european institutional framework, so that it remains as efficient as possible. the review of the esas should prompt us to strengthen eiopa missions. there are two areas in particular where enhanced convergence is needed, so that all european consumers are protected wherever the insurer is located in the european union : construction and medical liability insurance. eiopa has already launched cooperation platforms in order to facilitate information exchanges regarding construction liability insurance. we are strongly in favour of pursuing these initiatives and adopting measures to 1 / 4 bis central bankers'speeches harmonise supervisory practices in this regard. at the same time we should maintain a clear distinction between the day - to - day supervision entrusted to national competent authorities ( nca ) and the regulatory harmonisation role that has to be played by eiopa. in line with this principle, the validation of internal models, for instance, should preferably remain the responsibility of the nca in order to reflect the close link between this decision and the on - going dialogue that takes place between the insurer and its national supervisor ; eiopa for its part could concentrate more efficiently on the essential task of enhancing the harmonisation between national practices. in addition to these desirable adjustments of the european institutional framework, there is a need to make concrete progress towards a european resolution mechanism, which would provide more adequate tools to limit the impact of an insurer failure and increase trust and confidence. france has been working along these lines at national level and such a mechanism will be in place in our country before december. 1 the french resolution insurance regime requires insurers of a certain size to set up preventive recovery plans, which will form the basis for preventive resolution

penalising factors. the question now is how to " operationalise " stress tests and transition plans into capital requirements. in my view ( viii ) the simplest and most international way forward is to integrate them into basel capital requirements, in pillar 2 on risk governance, business model and credit risk as a first - stage approach. * * to conclude, let me recall what the avant - garde fashion designer issey miyake inspiringly said : " many people repeat the past. i'm not interested. i prefer evolution. " today's shifting world gives even more credit to this japanese master, who relentlessly navigated between tokyo and paris, designed steve job's black turtlenecks in which he delivered his keynote speeches, and stood as a pioneer of fashion tech and ecology. let us, in this challenging crisis, stand as pioneers too. ( i ) support to mitigate unemployment risks in an emergency ( ii ) autumn 2022 economic forecast : the eu economy to a turning point, european commission, 11 november 2022 ( iii ) source : bloomberg, banque de france calculations ( iv ) european commission, next generation eu green bonds ( v ) network for greening the financial system ( vi ) international sustainability standards board ( vii ) securities and exchange commission ( viii ) villeroy de galhau, f., past progress induces new challenges : raising the stakes for standard disclosure, supervisory requirements and collective governance, speech, climate finance day, 27 october 2022 4 / 4 bis - central bankers'speeches