attach importance to supporting technological innovations, including via the potential development of more efficient regulation or “ regtechs ”, as long as they go hand in hand with low operational risks and high transaction safety. third, economic services : payments are the nexus where a new ecosystem based on technological innovation and entrepreneurship is blooming. these developments are for the benefit of the real economy – and more particularly the corporate sector – in france and in europe : a myriad of so called “ fintechs ” are now emerging. they are competing with incumbents, notably in the united states, and are proposing not only new ways of paying but also new services related to payments ( such as account aggregation ). so there are high industrial stakes involved, and we must foster active competition, which is far preferable to monopolies, even technological ones. given the importance of payments in many aspects of our economy, we need a comprehensive 1 / 3 bis central bankers'speeches strategy. most importantly, innovation should be spurred, whether it comes from start - ups or incumbents. this is exactly the purpose of the french national strategy for retail payments – consistent with the european framework. this french strategy was developed last year through a cooperative process : it aims at modernizing payments, by relying on the dematerialization of processes in different fields, such as e - invoicing, e - mandates for sepa direct debits, virtual wallets, etc. the implementation of this strategy has been entrusted to the national committee for payments ( cnps ), your co - host for this conference, which gathers representatives from both the supply and the demand side and is chaired by the banque de france. going beyond the sole payments sphere, innovation in the financial sector can generate significant benefits that have to be reaped. it has the potential to foster financial inclusion all over the world, as long as people are provided with internet access. it also prompts incumbents to adapt, pushing them to develop new business models and new activities that ultimately benefit the customers. in this regard, let me highlight the initiatives to develop instant payments in the sepa area, to facilitate market - based funding and equity financing in the european union. i would like also to mention that the banque de france is conducting its own experiments, with the recent creation of a lab and the appointment a chief digital officer, thierry bedoin, who will moderate the first panel of this afternoon ’ s session. 2. technological innovation is to be welcomed

most internationally active institutions and the operational implementation could be improved significantly ( lack of metrics, specification of strategic orientations at the business - line level … ). the development of risk analysis tools is mainly focused on transition risks as related exposures represent a potentially much larger share of their balance sheet ( net credit exposure to the most carbon - intensive sectors indeed averaged 12. 2 % of total exposures in 2017 among 6 of the 7 main french banks ) compared to physical risk - related exposures ( as most of assets are located in countries displaying a low vulnerability to climate change e. g. western europe ). a wide variety of tools have been reported but each of them has still important drawbacks arguing for further refinement and more data collection with certainly a need for support from supervisors. 1 / 2 bis central bankers'speeches finally, liability risk is not viewed as a material one at this stage despite a growing number of climate change - related litigation cases. therefore, there is ample room for progress leading the acpr to lay - out recommendations directed to institutions on the one hand and to regulators and the supervisors on the other hand. in particular, as a supervisor we should be able to quickly come up with a prudential reporting of exposures to unsustainable activities. from this point of view, the forthcoming taxonomy from the european commission will certainly be useful but not enough to achieve this as a taxonomy of unsustainable activities is needed. we should also anchor expectations of financial institutions about climate - related risks by publishing strategic roadmap about the way the supervisor intends to scale - up the supervision of these risks along the different regulatory pillars. also, developing stress - testing frameworks remains a collective challenge about which central banks and supervisors should strengthen their works. at our level, the next stage of our works is to organize work streams with banks in order to specify together the best practices of the sector in terms of governance and to reflect on scenarios and metrics to best assess the vulnerability of banks, liaising with the work carried out with the ngfs. at the end, the release of these surveys and their follow - up signal the willingness of the acpr / banque de france to gradually “ mainstream ” climate changerelated risks. this willingness is also growing among european institutions as attested by the recent move from the ssm to launch its own internal network combined with an nca climate contact group. the ambition is to contribute to european and international fora as well as be