Jean-Paul Redouin: Risks may be transferred, but they do not disappear! Address by Mr Jean-Paul Redouin, Deputy Governor of the Bank of France, at the Paris Europlace, Financial Forum, Stockholm, 29 March 2007. *  *  *  The international financial system is going through an extraordinarily benign phase. The world is enjoying stable inflation and strong and broad-based GDP growth. At the macrofinancial level, corporate profits have been sustained, risk premia have been very thin for a broad set of asset classes, and volatilities remain unusually low. Based on these market signals, risks appear very low. Do risk premia correctly reflect the risks currently facing the financial system? Or is their low level the result of excessive risk appetite on financial markets? Indeed, some recent warning signals have reminded us how fragile the current pricing of risk is, and how much it relies on the expectation that an “ideal scenario” of strong growth and contained inflation will prevail. In this context, I would like to focus my remarks on a very important structural development: credit risk transfer. Basically, the transfer of risks helps to spread them, according to a process I shall call the “atomisation of risk" (namely risk being split into elementary particles and then re-packaged). But do these techniques mean that risks disappear? The breakthrough of CRT has gone hand in hand with constant innovation and the emergence of powerful non-bank players.
Denis Beau: Moving beyond the first generation of innovation and regulation for tokenized finance - the case of DeFi Address by Mr Denis Beau, First Deputy Governor of the Bank of France, at the occasion of the change of Bank of France Head of the Asia-Pacific Representative Office, Singapore, 31 March 2023. *** I am glad to be here with you today for this handover reception. It gives me the opportunity and the pleasure to thank François Haas and to welcome Stéphane Latouche as our outgoing and incoming chief representative in Asia and head of the Bank of France Office in Singapour. It also gives me the opportunity to underline our very good and multifaceted cooperation with the MAS, in particular on financial innovation. In my remarks today, I would like to illustrate this cooperation, notably with our work on the development of tokenised finance, and the so-called decentralised finance, and how we, at the Banque de France and the ACPR, are working to respond to this change of paradigm, in line with our financial stability mandate. I. A strengthening of bilateral ties between the ACPR, BdF and MAS, a very close and sustainable partnership between Singapore and France Let me start with what the ACPR, BdF, and MAS have achieved together.