All in all, this new FSR underlines three main aspects with respect to financing the economy: –  The regulatory drivers have and will continue to have an important bearing on market participants’ behavior and strategies. –  The transition towards a more balanced financing pattern needs to be supported by public intervention. –  There is still a lot to do in order to drain resources more effectively and ensure a sufficient flow of long-term financing, which is a prerequisite for recovery and growth. Before we get into the discussion, let me briefly share with you some personal thoughts in this regard. In my view, the challenges to finance the economy are mainly two-fold: –  On the one hand, some segments of the economy, namely SMEs and infrastructures, rely heavily on bank-financing, due to the existence of high fixed costs and significant information asymmetries. Indeed, banks are better equipped to assess the credit-worthiness of such counterparties or projects. Facing this situation requires to unlock bank lending. –  On the other hand, and that concerns the economy as a whole, it is essential to foster the development of a market financing as a complement to bank financing. Although the process has already started, the speed and extent of the shift differs across countries and sectors. The development of a more balanced funding structure is a necessarily long process, which requires a strong commitment and support from public intervention.
In parallel, reintermediation by non-banks raises level-playing field questions linked with uneven regulation and supervision across sectors and countries. To discuss these important issues, we are extremely fortunate to gather an exceptional panel today, with: •  Mrs Sheila Bair, Chair of the Systemic Risk Council, former chair of the Federal Deposit Insurance Corporation (FDIC), who is obviously a prominent regulator. Dear Sheila, your work to build a more robust financial system, that serves the economy, is particularly impressive and your views on how to make it even more resilient are very sharp;  •  We also have Mrs Barbara Novick, Vice-chair of Blackrock and the author of impactful articles on asset management and public policy; as well as Mr Alain Papiasse, Deputy Chief Operating Officer (COO) at BNP Paribas, representing the group in North America. Barbara and Alain are two top market practitioners with a comprehensive experience in both asset management and investment banking. So, dear Barbara, dear Alain, I hope you will provide us with “insider” and complementary visions of what it really means to finance the economy. •  And finally let me introduce Mr Thomas Philippon, a distinguished academic from NYU, notably specialized in the evolution of the financial industry. Dear Thomas, your research on the financialization of the economy will provide a unique viewpoint by putting in perspective the links that exist between the financial industry and the economy. Thank you all for being with us today. Let me now give the floor to our panelists.