Christian Noyer: Financial Stability Review “OTC derivatives: new rules, new actors, new risks” Speech by Mr Christian Noyer, Governor of the Bank of France and Chairman of the Board of Directors of the Bank for International Settlements, at the launch of the latest issue of Bank of France’s Financial Stability Review on “OTC derivatives: new rules, new actors, new risks”, New York, 22 April 2013. *  *  *  I am very happy to be with you today to launch the latest issue of Banque de France's Financial Stability Review on “OTC derivatives, new rules, new actors, new risks”. As you know, every year since 2002, our Review has brought together contributions from prominent academics, practitioners and policy-makers from all over the world on a topical issue. I warmly thank all the contributors who have enabled us to produce a Review, of great interest, thanks to their papers of exceptional quality and density. I cannot mention all of them and only some authors are with me today; [but you can find all articles in the online and paper versions of the Review, copies of which are available on tables at the back]. Those contributions are very diverse, or even divergent, in their analysis and proposals. That’s how we want it. It is clear we don’t necessarily share the views expressed in the articles but we all believe in the exchange of ideas.
Instead of seeing social housing as a passive benefit, we can eventually develop projects which become to an extent self-financing, through a combination of social housing provision and programmes to enhance the employability of individuals, enabling them to eventually pay market rents. The financial sector could play a role here. We have already seen how some banks have partnered with government to offer social loans, which are beginning to decrease reliance on the social housing stock. Going forward, we can see the possibility of other innovative initiatives where the Housing Authority partners with financial institutions to develop social housing projects. Page 5 of 10  At this point, I take this opportunity to inform you that the Central Bank of Malta has set up a lean but highly competent and proactive Social Research Unit to study amongst other issues, access to credit by the lower income groups. Another area where we need to register progress is home equity release. We have a situation where many elderly persons are asset rich but cash poor. They live on relatively modest pensions, while residing in large and relatively expensive homes. This creates issues for financing long-term care, as many find it difficult to sell their homes outright in order to go into a private home.