anne le lorier : regulating non - banks – ways forward and challenges ahead speech by ms anne le lorier, first deputy governor of the bank of france, at the acprbank of france conference “ financial regulation - stability versus uniformity, a focus on nonbanks actors ”, paris, 28 september 2015. * * * dear ladies and gentlemen, dear colleagues and friends, on behalf of the banque de france and of the acpr, i would first like to thank very much the speakers and the participants in today ’ s conference for the quality of their presentations. indeed, they helped us to have insightful debates on the ongoing efforts made to prevent systemic crisis as much as possible, strengthen the global financial system and its resilience i. e. its capacity to withstand systemic shocks. as illustrated today, this is not an easy task and the global regulators are facing many challenges in shooting at a moving target : the financial system not only adapts, but also transforms itself and anticipates regulatory changes, sometimes constructively, sometimes less, thereby continuously modifying the sources, the channels and the shape of systemic risks. regulation itself can be ill - designed, too narrowly focused or can generate unintended consequences. there is no doubt that tremendous efforts have been made in the wake of the financial crisis to reach our objective of financial stability, providing the policymakers with additional tools to build - in robustness into the global financial system, increase the loss absorption capacity of financial institutions and infrastructures, and limit the scope for contagion while new approaches to prevent systemic risk have been developed, namely macroprudential policies. however, due to the magnitude of the task, its difficulty and its complexity, global regulators had to proceed with a sequential approach, starting by the banking system where their knowhow was the best, and expanding gradually a framework to the rest of the financial system in concentric circles. as a consequence, we are currently facing three challenges that i would like to focus on : keeping the momentum for reforms, allowing for the diversity and ensuring the robustness of the global financial system. 1. keeping the momentum after such a long and intense conference day, you might already feel a sentiment of regulatory fatigue! consequently, you might appreciate the feeling of regulators and financial intermediaries after more than 8 years of intense regulatory developments and debates! and yet, the latter are not completed nor their implementation! banking regulation, which is almost complete now, will only come into force

around 35 till 2040. in 2020, the average indian will be only 29 years old, compared with the average age of 37 years in china and the us, 45 in west europe and 48 in japan. while there are some inter - regional differences in demographic features, given the free labour mobility, for the country as a whole, the relatively prolonged favourable demographic transition would have an important bearing on the overall economic growth process. given our emphasis on human resource development in terms of producing large number of engineers, technologists, doctors, etc., it is expected that a large and young population of india would have high labour productivity along with lower need for social security and health related expenditures. this is expected to power the growth process of not only india, but would increasingly meet the growing need of other industrialised countries. the demographic process would, no doubt, create a large and growing labour force. however, the window of opportunity provided by a relatively large and young workforce in india needs a conducive social policy environment for getting realised. in this context, it is recognised that further efforts are needed at accelerated pace to create a quality social infrastructure in terms of education and health which can help the easy and productive absorption of the prospective'' youth bulge''. public policy is increasingly aware of the need to give high priority to education and health and also generating employment that is consistent with global competitiveness. in other words, to reap the rewards of demographic dividend, public - policy has a critical role to play. ( vi ) poverty and employment : the litmus tests the growth story in any developing country is incomplete without assessing its impact on the poverty and employment situation. the number of people living below the poverty line in india has decreased from around 36 per cent in 1993 - 94 to 22. 0 per cent in 2004 - 05. the average decline in the percentage of people below the poverty line over the period 1993 - 94 to 2004 - 05 is 0. 74 percentage points per year. india has ranked 126th, in terms of human development index ( hdi ) according to the undp human development report, 2006. the most daunting task for public policy is to ensure that adequate work is found for millions of poor people and in particular to the growing number of young persons. as per broad results of a recent job survey published in one of the popular magazines, the current high growth phase is not a jobless growth, but now the jobs are created in almost all sectors as