the srm fully operational should be our top priority. in my opinion, it is the common backstop to the single resolution fund that is really the key. experience from abroad is instructive : in most large jurisdictions, in particular the united states and the united kingdom, the intervention capabilities of resolution funds are backstopped by the fiscal authorities. and they are not a burden on public finances, since any public outlays are generally reimbursed by the private sector. the euro area agreement on the backstop reached on the 29th of june is a crucial first step. it is now urgent to deliver on it by the end of 2018. two key issues remain : how to fund the backstop at a sufficiently high level to be credible, and how to create a swift decision - making process to deal with emergencies – if we need 1 / 3 bis central bankers'speeches weeks, it is useless. the euro area also needs a system for providing liquidity to financially sound banks after resolution – one that is provided by the eurosystem and secured by a highquality public guarantee. i ’ m fully convinced that once we have a credible and efficient mechanism for resolution, it will be much easier to reach a pragmatic compromise on deposit insurance, probably with a focus on liquidity sharing between national guarantee schemes. let me add two thoughts on substance : first, on anti - money laundering. in this area, i am convinced that we need to enhance our approach by building on a network of national authorities and eba that should ensure an effective single anti - money laundering supervision. this means that eba should have the legal and human capacities to foster convergence of practices on the best standards, based on clear european mandates. it should go as far as including effective breach of law reviews and a capacity to directly intervene in some cases with european - wide impact. second, what we have managed to achieve for banks can serve as an example for financial markets. if we truly want to enhance financial integration for the purpose of better private risk sharing and convergence across europe, we need to advance the capital markets union agenda : we should in particular strengthen esma ’ s role as a supervisory authority, at least with regard to wholesale market oversight – while duly involving national authorities when appropriate. the chairman of the amf is a talented advocate of this. ii. our priority in method : developing synergies within the ssm as a whole let me come back to the ssm. after only four years

francois villeroy de galhau : financial supervision and the role of national authorities in europe opening address by mr francois villeroy de galhau, governor of the bank of france, at the autorite de controle prudentiel et de resolution ( acpr ) conference on financial supervision, paris, 18 september 2018. * * * mr. president [ m. draghi ], ms. chair [ d. nouy ], mesdames, messieurs, bonjour et bienvenue a paris, it is a particular pleasure to welcome you to this conference on financial supervision and the role of national authorities in europe. what better way to inaugurate the new headquarters of the acpr – france ’ s supervision authority – than to bring in colleagues and experts from across the continent. i urge you to look at a few street names in the neighbourhood : this borough is called in paris “ quartier de l ’ europe ” – very much in the spirit of what we are doing together at the ssm. i warmly thank president mario draghi for being here. before giving him the floor, let me stress that we all have reasons to be proud of what has been achieved for banking union in the past few years. but we must not be complacent. there are two priorities : one in substance, and one in method. * * i. our priority in substance : strengthening the second pillar on resolution now that we ’ ve had the single supervisory mechanism up and running for four years, it ’ s easy to forget that there were many sceptics who were sure that such a union could not be achieved. but, as mark twain would have said, “ [ we ] didn ’ t know it was impossible so [ we ] did it. ” today it is a tangible reality. in fact our supervisory practices have been harmonised upwards. our legal framework is stronger thanks to the single rulebook. and european banks are sounder – the cet1 solvency ratio for major institutions has increased by more than 3 points since 2014 ( from 11. 3 % to 14. 6 % at the end of last year ). daniele [ nouy ], you deserve our congratulations on this achievement! yet banking union ’ s second pillar, the single resolution mechanism ( srm ), is still incomplete. yes we have already managed our first cases, substantially improving the health of a number of banks, notably in spain and italy. but making