First, Europe has developed a consistent corpus of regulation on extra-financial disclosure (taxonomy, SFDR, CSDR) to tackle climate-related risks. We also took our part as central bank by carrying out a pilot climate stress test – followed by a recent ECB exercise completed this summer. Meanwhile, Europe is also adapting to the challenges arising from the digital revolution through a dedicated framework: the objective is, first, to enhance IT security requirements for the entire financial sector (DORA), and second, to establish a European harmonised regulation for crypto-asset issuers and crypto-asset service providers (MICA). Yet I hear repeatedly from the banking sector that prudential regulation is now excessive, and too much of a burden. Let me explain why these claims seem unfounded. In the past ten years, the regulatory framework has done nothing to hinder the sound financing of the European economy: in France for example, the distribution of loans to households and businesses by the French banks has even increased; since end-2010, the outstanding amount of credit grew almost three times faster than GDP (57% vs 21%). As time passes, we must be careful not to succumb to the “temptation to forget”. This very specific phenomenon has a nickname in economic theory: it is called “disaster myopia”. In order to prevent this today, we must absolutely implement the Basel III accord.
A more accurate description of the red line is average wage growth for people continuously in employment, adjusted for any the impact of changes in average age and experience across the workforce. BIS central bankers’ speeches  13