Already, several factors, such as the search for yield driven by a low interest rate environment, new regulatory constraints on the banking system, and digitalisation, are changing the way in which financing is designed, produced, distributed and managed. This transformation is  leading to a more diversified financing structure for our economies. Is this diversification desirable? Is this diversification sufficient? 1. A desirable diversification of financing modes to spur growth and innovation, which must be further supported My answer to the first question is yes because too strong a reliance on bank financing may constitute a source of vulnerability for business development in the event of a shock affecting the banking system. However, the relatively slow pace of development of this diversification  shows that it is not so simple to achieve, and that it should be further encouraged. A. In the short term, the efforts made to adapt the regulatory framework and standardise the alternative sources of financing to bank lending should be pursued. In recent years, public authorities have made significant efforts to adapt the regulatory framework in order to support the development of alternative sources of financing to bank lending. These efforts must be pursued and matched by those of private players to standardise the market. Thus, since 2017, the European Union has established a set of new rules for the development of sound securitisation, i.e.
At the same time, a number of new, more structural risks are also emerging, brought about by digitalisation and global warming Digitisation first gives a systemic dimension to cyber risk. The expansion of digital practices contributes to the propagation of cyber risk and amplifies it, through the interconnections between financial institutions, but also between them and their service providers. The fact that some of these providers are Fintechs and Bigtechs, which are unregulated and not easily substitutable, is an additional vulnerability factor. To cope with these risks, we must resist the temptation to set up a bunker-style security system, which is a dead end, but rather imagine a system which combines openness and innovation. This is why we, at the Banque de France and the ACPR, are working with the other supervisors of the Eurosystem to ensure that the entities we supervise take cyber risk into account and to set up a broad programme for protecting the infrastructures that we operate. Cyber security is one of the key priorities of the French Presidency of the G7 in 2019. The Banque de France also contributes to the work conducted in this wider framework by coordinating the preparation and implementation of a cyber resilience test for the global financial sector. As regards the risks associated with climate change, they can no longer be ignored. Physical risks – which correspond to the rise in the frequency and severity of extreme weather phenomena – are obviously the most visible and immediate for the financial sector.