The head of the central bank of France said that strict measures to regulate the processes taking place in the banking sector create an advantageous position for creditors.
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Last Tuesday, May 9, in Paris, the head of the Bank of France, Francois Villeroy de Gallo, said that compared to American lenders, European financial institutions are in the space of more strict legal control, but, according to him, this circumstance allowed organizations to be more stable during market turmoil.
Francois Villeroy de Gallo is convinced that European banks have a higher level of reliability, have significant capital and liquidity reserves. These financial institutions have been coordinating their activities with the strict requirements of Basel and the norms of unified supervision within the Banking Union since 2014.
Gilles Gade, CEO of Cross River Bank, talking about the obligation of responsible behavior and its provision during the expansion of the scale of credit partnerships, said that federal regulators should cooperate with banks to create a formulated concept of control over these commercial relationships.
The head of the financial institution noted that variants of regulatory guidance in the banking industry have been created, but they have not been officially approved as legal practice.
He also stressed that credit partnerships in the United States have several difficulties that are associated with differences in state legislative bases and differing rules of legal control. In his opinion, the current situation is something that symbolically resembles something a patchwork quilt, which is unreliable and unworkable from the point of view of implementation possibilities. Gilles Gade is also convinced that the absence of a single regulatory guide creates opportunities for fraudulent activity. At the same time, the national standard is a guarantee that all banks, including those focused on the fintech industry, will comply with a universal set of rules.
Gilles Gade said that the work of the Federal Reserve System and the Office of the Comptroller of the Currency to monitor new activities is good, but additional rework is needed at the federal and state levels to determine the nature of the reaction of financial institutions to risks. He noted that in times of crisis, regulators and individual consumer groups are prone to overly emotional decisions.
Francois Villeroy de Gallo is convinced that a reliable European banking industry helps attract investors who leave London after Brexit. He also stated that Paris was in an advantageous position, being a center that attracts all segments of the financial industry. The head of the Bank of France is confident that the momentum has gradually shifted from London to continental Europe. He believes that Paris now ranks first in terms of stock market capitalization in Europe.
As we have reported earlier, France adds NFC transit.
