The broad strength of private spending also testified to inherently sound economic fundamentals, including rising income, low unemployment, and robust private sector confidence. At the same time, additional support from accommodative macroeconomic policy, both fiscal and monetary, helped maintain economic momentum throughout last year. Notwithstanding a somewhat lackluster economic performance in the first quarter of this year, many of the supportive factors are expected to remain in place. Forward-looking indicators suggest both businesses and consumers continue to hold positive outlook on the economy. Fiscal stimulus related to the large-scale public investment in infrastructure should begin to phase in from the latter part of this year, potentially generating positive crowding-in effects on private spending. Financial conditions also continue to be supportive of growth, with policy interest rate staying low and private sector credit growth expanding at a doubledigit rate. Longer-term interest rates and borrowing costs have been low and stable, affording both businesses and households relatively easy access to finance. In fact, if anything, a high pace of credit growth may have raised risks of overheating in some sectors, with potential implications for financial stability. The Monetary Policy Committee (MPC) has flagged this risk several times since last year, and will continue to monitor the situation closely. On the other hand, there remains an important drag to growth, largely stemming from a protracted global recovery. In some parts of Asia, the first quarter growth has turned out to be lower than expected, as a result of slowing global trade.
Presentation of the Annual Report of the Autorité de contrôle prudentiel et de résolution (ACPR) for 2022 Press conference, Wednesday 31 May 2023  Speech by François Villeroy de Galhau, Governor of the Banque de France Chairman of the ACPR  Page 1 of 9 Ladies and Gentlemen, I am pleased to welcome you to our yearly presentation of the Annual Report of the Autorité de contrôle prudentiel et de résolution (ACPR – Prudential Supervision and Resolution Authority), in the company of Jean-Paul Faugère, Vice-Chairman of the ACPR, Alain Ménéménis, President of the Sanctions Committee, and Nathalie Aufauvre, Secretary General of the ACPR since January 2023. The events of 2022 and the beginning of 2023 have raised significant challenges, but also two valuable confirmations: that of the soundness of the French banking and insurance sector (I), and that of the European model of regulation and supervision (II). We nevertheless need to take reinforcement actions in the short and medium term (III). I. Major challenges that confirm the robustness of our financial system... 2022 will naturally remain the year when Russia invaded Ukraine. Geopolitical uncertainty spread to the financial sector, notably with the sharp rise in commodity prices and margin calls on their derivatives. This was compounded by other sources of volatility, in particular on the UK's sovereign debt, and the collapse of a number of crypto-assets.