It would be an exaggeration, however, to say this is the only reason profits are under pressure: monetary policy also has favourable effects for banks, including a reduction in the cost of risk and an increase in lending volumes; and certain banking systems, notably those in Nordic countries, are generating higher profits with interest rates that are at least as low as ours. On a more structural level, financial institutions – banks and insurers alike – are facing an existential challenge, that of their digital transformation which is revolutionising modes of use and opening up a world of possibilities for customers. However, adapting to this new ecosystem requires huge investment as well as placing downward pressure on revenues. Faced with this challenge, financial institutions will need to find new productivity gains and new tailored services, by tapping even deeper into the possibilities of automation and artificial intelligence (AI). The ACPR is working actively on these issues. Following the publication of a discussion paper on the challenges posed by AI in the financial sector, in February the ACPR launched a call for candidates to participate in joint workshops with financial industry participants. Three key processes are concerned: AML/CTF, internal models and customer protection. The third factor warranting attention relates to investment banks.
That said, private sector actors do not need to wait for public authorities to do everything before starting to think about consolidation strategies. Lastly, we also need to ensure that institutions are treated equally under international regulations. If we are to reach an agreement, two conditions must be met. The transposition of Basel III must be reasonable and take into account the application of the “output floor” at  Page 4 of 5  the highest level of consolidation. Above all, the transposition must be fair and applied to the letter in all jurisdictions, including in the United States. Let me be clear about one thing, however: the solution to our banking challenges is not deregulation but rather innovation; not a step backwards – towards the financial crisis – but a leap forwards. III. We need to remain fully mobilised with regard to two deadly risks: ALM/CTF and cyber-security  The fight against money laundering and terrorist financing (ALM/CTF) calls for unwavering commitment. The 23 inspections carried out by the ACPR revealed major failings in supervised entities’ compliance with their AML/CTF and asset-freezing obligations. In 2018, the Sanctions Committee imposed nine sanctions, one of which amounted to EUR 50 million. In parallel with the Financial Action Task Force’s assessment of France in 2020, the ACPR will be closely involved in the implementation of a robust and renewed AML/CTF system at the European level.