difficulties –, as they have become systemically more important with compulsory centralised clearing for derivative instruments. above all, we must ensure a balance between financing channels. all discussions on the shadow banking system must continue in order to take account of the risks that may have moved into this sector as a result of the ramping up of requirements in the regulated sector, and for banks and insurers in particular. it has been estimated that the segments that may pose financial stability risks represented a total of usd 34 trillion. 14 the priority has now shifted from the solvency of banks, which has improved substantially, to the liquidity of the shadow banking sector, particularly funds and asset management companies that are exposed to the risks of sudden panic - driven runs. lastly, progress is required on fintechs and above all on the major digital platforms and businesses, which, if they carry out financial activities, will have to comply with similar regulations sooner or later. 3 ) the third challenge is evaluation. evaluation is essential to the credibility of the financial reforms that have been adopted worldwide, and to this end, the g20 adopted a postimplementation evaluation framework this summer. this framework should allow us to determine whether the reforms have actually achieved their desired results, without any unexpected, adverse effects, and to make adjustments if this is not the case. two initial evaluations are already underway : the first deals with the effectiveness of reforms that encourage the use of central clearing while the second assesses the impact of g20 reforms on access to financing, which will begin by looking at infrastructure financing before focusing on credit to small and medium - sized enterprises ( smes ). the first evaluation reports are expected to be made public by the end of 2018. 4 ) the fourth challenge, in order to consolidate the progress we have made, is to ensure that the new regulatory framework is implemented consistently across the board while remaining vigilant to avoid backtracking. in the country doctor, balzac wrote “... in all things human, is not constancy the highest expression of strength? ", rightly reserving this virtue for the great men of his day. now, as you know, the new us government has raised the possibility of reviewing their national banking regulations. 15 certain national adjustments could be considered appropriate and justified, as is the case, for example, for regulations that concern entities whose operations are only local in scale, or regulations that are purely american in scope such as the volcker rule

we were aware of its fragility stemming from its increasing refinancing difficulties and we knew that there were longer - term liquidity risks. the cif is a textbook case where a downgrade by ratings agency expedited the disclosure of funding problems. would you say that moody ’ s was responsible for this situation? no, the primary responsibility lies with its management, which was unable to find a merger solution when it was possible and we had asked it to do so. did you lack coercive power in this case? yes, definitely. we have very great powers when an institution does not comply with regulations, but we do not have powers that enable us to prevent a crisis. as things stand, we can appoint temporary administrators if need be or revoke an authorisation, but we do not have powers of resolution allowing us to impose the restructuring of a banking group or transfers of assets. we worked on a draft regulation before the european project started to be discussed, but we underestimated the length of time needed to arrive at a european proposal. i regret this somewhat as it would have been useful for us. is the french banking system still sufficiently robust? in fact, french banks are increasingly robust as they are reducing their risks and increasing their capital. the reduction of risk has resulted from the selling - off of business lines, often abroad, and a scaling - back of some market activities ; the increase in their capital reflects the setting aside of profits that remain substantial thanks, in particular, to the resilience of retail banking in the face of the economic slowdown. their core tier 1 capital grew by 0. 5 percentage point in the second quarter and they have exceeded the target set by the eba. in terms of liquidity, they have managed very well the withdrawal of us money market funds last year by adjusting their assets, as well as the rebalancing of their sovereign bond portfolios. this goes to show that, if it is based on a sound internal model, the universal banking model works well. bis central bankers ’ speeches do you remain opposed to the separation of investment and retail activities? i really do not understand the benefit of this principle of separating activities. the only thing i wish to see is the outright prohibition of speculative activities and stronger internal controls for the risks associated with market activities. otherwise, banks should be able to serve their customers, whether they are private individuals, companies or institutions, in all of their operations – on bond markets, fore