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Financial Regulation and Governance

 

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New challenges for financing the economy

By Marie-Anne Barbat-Layani
August 2018 - Réalités Industrielles
Contrary to other euro area countries, the credit crunch overlooked France during the financial crisis. Levels of access to credit remained very high, backed by positive lending conditions. France was also the sole euro area country where the taxpayer was spared the cost. French banks weathered the crisis well, enjoying higher and less volatile returns than those of their European ...
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Banks since the meltdown

By Jean Beunardeau
August 2018 - Réalités Industrielles
In general, economic and banking crises are triggered by the financing of unprofitable investments, which result in credit losses. The 2008 financial meltdown was no exception and, owing to its severity, governments and regulatory authorities had to recast the banking industry’s regulatory framework. This involved higher prudential ratios, amended rules for the calculation of ...
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The Cost of Regulation

By Michala Marcussen
August 2018 - Réalités Industrielles
Tighter regulation inevitably carries a cost, but must be weighed against the benefits of greater financial stability. Estimating net benefits is, however, a complex exercise and while consensus is that in aggregate these remain positive, gains could be made by improving efficiency and addressing leakages. Moreover, structural reform, and not least completing the European Banking and ...
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Fiscal innovation to make European banks
more stable and competitive

By Michael Tröge
August 2018 - Réalités Industrielles
Following a series of tax and accounting reforms since the 1980s, the corporate tax system now favours debt financing. This pro-debt bias forces banks, in particular, to take on very high levels of debt to remain competitive. Recent empirical research has shown that this mechanism is one of the primary causes of the financial system’s weakness. However, there are simple tax or ...
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Bank capital and RoE: erroneous beliefs
and financial instability

By Christophe Moussu
August 2018 - Réalités Industrielles
Since the crisis, banks’ beliefs regarding optimal capital levels and performance objectives have clearly not changed significantly. Yet a substantial body of academic research on bank capital has shown that the banks with the highest capital levels are more resilient to shocks, are more efficient, gain more market share and command the highest valuations ...
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The introduction of cognitive technology
at Crédit Mutuel

By Frantz Rublé
March 2018 - Digital Issues
Even as the digital transition is changing the behavior patterns of its shareholding customers, as its account advisors need everyday assistance in order to provide better services to customers, and as the first cognitive computing solutions based on IBM’s Watson technology are emerging, the Crédit Mutuel, a mutualist bank in France, is working with IBM to develop the first AI ...
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A whale in shallow waters:
JPMorgan Chase, the “London Whale”
and the organisational catastrophe of 2012

By François Valérian
November 2017 - Réalités Industrielles
The case of the so-called “London Whale” cost US bank JP Morgan Chase & Co. more than $6bn. The hearings held by the United States Senate enabled this case to be carefully documented, and shed light on the errors committed by an organisation that believed it was implementing an innovative, profitable hedging strategy – but was actually taking risks that were significant and very poorly....
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Orange Bank:
The first telecom-bank

By Jean-Bernard Mateu
November 2017 - Réalités Industrielles
In a rapidly-changing world of banks, customers and technology, the Orange Group decided to launch a native mobile banking system that offers an incomparable user experience. To do so, Orange was able to draw on a set of unique strengths: a strong brand that embodies key values such as security and reliability, a solid distribution network, the Group's capital base and, ....
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Vulnerable populations:
An overview of La Banque Postale's experience providing universal banking accessibility

By Didier Brune
November 2017 - Réalités Industrielles
Like all other banking institutions, La Banque Postale is seeing fewer clients coming into its branch offices, as people nowadays carry out most of their daily financial transactions remotely, using their smartphones, and are using cash less and less.
Yet thanks to its easy accessibility, its strong foothold in underprivileged suburban neighbourhoods, ...
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The UN’s Sustainable Development Goals
(SDGs) and the financial sector:
CDC’s experience

By Maria Scolan
October 2017 - Responsabilité & Environnement
The UN’s Sustainable Development Goals (SDGs) provide a universal approach to what Caisse des Dépôts (CDC) refers to, in the French tradition, as the “public interest”. This framework adopted by the international community provides CDC, as a public financial institution, with an opportunity to develop its own evaluative culture of its socio-economic impact. CDC’s role also entails ...
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The Icelandic financial crisis
and self-fulfilling prophecies:
Chronicles of a prophesied bankruptcy
(2006-2008)

By François Valérian
August 2016 - Réalités Industrielles
The meltdown of the three major Icelandic banks in the autumn of 2008 has been set down to phenomena as varied as: bloated assets in financial statements, “adventuresome” deregulation, inadequate supervision, the banks' poor governance, weak ethics, a macroeconomic disequilibrium and the lack of international cooperation. As a review of more than a hundred reports, ....
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The majority of the articles published here were translated from French to English by the Translation Centre of the French economy and finance ministries.
The remaining articles were translated by Noal Mellott.