The achievements of the December agreement must resolutely be built upon: regarding the Banking Union, a common backstop that would be available rapidly and remain in place for a sufficiently long period is an essential element, even more than the deposit insurance scheme, to ensure that the single resolution mechanism is solid and effective. The Capital Markets Union, on which everyone agrees in principle, must finally forge ahead to better channel our EUR 350 billion private savings surplus towards the concrete needs of our economy: digital innovation, the energy transition and SMEs’ capital. Finally, the progress achieved on the public solidarity mechanisms – preventive intervention of the European Stability Mechanism, fiscal capacity – is a promising prospect but it needs to be translated into action. 2 – My second wish is for financial stability 1/3  BIS central bankers' speeches  I would first like to acknowledge the soundness of our financial institutions. In June 2018, the Tier 1 capital ratio of the main French banks stood at 13.5%, i.e. 7.7% higher than in 2008. The liquidity situation has improved, with an average LCR of 127%. The share of non-performing loans has continued to decline to stand at 3.1% in June 2018, i.e. close to the pre-crisis level, compared with a European average of 3.6%. The same holds true for insurers. Their capitalisation is good, and their solvency has improved, with the average coverage ratio of the major insurers rising by 9 percentage points to reach 241%.
However, insurers are also sensitive to the risk of prolonged low interest rates, and, together with Bernard Delas, I can only call for further moderation in the rates on life insurance contracts. As regards financial stability, we must draw all the consequences of a rejection by the British Parliament of the draft Brexit agreement. There is strong political uncertainty in Britain: we can still hope for the best, but we must actively prepare for the worst scenario, that is a “No Deal Brexit". I would like to welcome the efforts that you have made to anticipate these consequences. The Banque de France and the ACPR, in liaison with the European authorities, will by the end of March take all necessary measures in the framework of the draft law “empowering the Government to take steps to prepare for the withdrawal of the United Kingdom from the European Union”, which will be re submitted to the French Senate tomorrow. Beyond Brexit, each sector faces its own regulatory issues: Basel III and Solvency II. For banks, the key issue of the CRR/CRD package is the transposition into European law of the Basel III agreement, which was obtained after much wrangling on 7 December 2017 and properly completed with market risks on Monday in Basel. It will have to take into account European specificities – including those of French banks – while maintaining the principle of maximum harmonisation, which is essential to the deepening of the Banking Union.