The Banque de France’s macroprudential role
The Law of 26 July 2013 on the Separation and Regulation of Banking Activities entrusts the Banque de France with a specific mandate regarding financial stability. In liaison with the Haut Conseil de Stabilité Financière (HCSF – High Council for Financial Stability), it is tasked with identifying and tracking risks to the financial system and with implementing the measures stipulated by the HCSF. The Governor of the Banque de France also proposes measures for adoption by the HCSF
National bodies in charge of macroprudential policy
The Haut Conseil de Stabilité Financière
The HCSF is responsible for monitoring and preventing systemic risk, which is the risk of an impairment of the overall financial system, adversely affecting its capacity to perform its key function of financing the economy. The HCSF formulates opinions and recommendations for financial system participants. It also has binding powers : it can, at the proposal of the Governor, impose additional capital requirements on financial institutions or set lending conditions.
The HCSF cooperates with equivalent authorities in other European Member States and with competent European institutions. It has the power to submit opinions to European institutions recommending the adoption of temporary measures to mitigate systemic risk or threats to France’s financial stability.
The HCSF’s secretariat functions are carried out jointly by the French Treasury and the Banque de France.
National institutions with a financial stability mandate
The HCSF is responsible for ensuring dialogue and cooperation between all national institutions with a financial stability mandate. The HCSF is made up of representatives of these institutions:
- the Governor of the Banque de France, who is also Chairman of the Autorité de Contrôle Prudentiel et de Résolution (ACPR – Prudential Supervision and Resolution Authority)
- the Vice-Chairman of the ACPR
- the Chairman of the Autorité des Marchés Financiers (AMF – Financial Markets Authority)
- the Chairman of the Autorité des Normes Comptables (ANC – Accounting Standards Authority)
In addition to these representatives, the HCSF comprises three other qualified individuals.
European and international bodies tasked with macroprudential oversight of the financial system
The European Systemic Risk Board (ESRB) is independent of the European Union and is responsible for the macroprudential supervision of the EU financial system. Its headquarters are in Frankfurt and its secretariat is provided by the European Central Bank (ECB).
At the international level, macroprudential oversight is entrusted to: