A dynamic economy requires a strong banking industry; it's true in France, and it's also true in Germany. Undeniably, euro area banks are stronger than they were ten years ago. As a result of regulations and of their streamlining efforts, they  Page 5 sur 7 were able to significantly shore up their balance sheets. In particular, their solvency and liquidity have improved, while the weight of NPL has drastically declined: their Common Equity Tier 1 ratios (CET1) rose from 9% at end-2009 to 14.6% in June 2019. In addition, the major German banks themselves have seen their NPL amount fall more than twofold over the past five years, sliding from EUR 81 billion at end-2014iii to EUR 33 billion at end-March 2019. Euro area banks are nevertheless experiencing a serious problem of profitability, which is a cause for concern, both for you and us. I would like to outline three challenges that are often mentioned in this regard: low interest rates, the digital challenge, and consolidation. Let's start with the subject that is perhaps the most obvious to you: low interest rates. Negative rates are not an end in themselves, and we, as central bankers, are aware of the difficulties this represents for banks. However, I would like to qualify this statement. First, the effect of monetary policy on banks is not limited to exerting pressure on the net interest margin.
Denis Beau: For a contribution from our FinTech ecosystem to a more efficient and stable financial system Speech by Mr Denis Beau, First Deputy Governor of the Bank of France, at the Fintech R:evolution 2020, Paris, 15 October 2020. * * * Ladies and Gentlemen, I am delighted to take part in this 5th edition of Fintech R:evolution and I would like to warmly thank the France Fintech association and its chairman Alain Clot for their invitation to speak today. This event, organised against the backdrop of the ongoing health crisis, is proof of the drive, determination and adaptability not only of the organising association, France FinTech, but also of the entire innovative French ecosystem of the financial sector, which is now represented here as widely as possible. The French FinTech ecosystem, like any ecosystem made up of start-ups, is fragile but it is promising and, I believe, vital to the financial sector. The economic crisis associated with the health crisis highlights these contrasting characteristics: on the one hand, start-ups may be weakened or innovative projects delayed by the economic situation; and on the other hand, the health crisis has accelerated the adoption of new digital habits by the entire population. More generally, 2020 has only served to underscore the challenges facing the financial ecosystem as a whole as a result of the digitisation of our economy.