8  BIS Review 67/2007  One positive aspect is that institutions are raising finance especially by resorting to medium-term resources, which are more stable than those that might be obtained on the interbank market. Insofar as the secondary markets are sufficiently liquid, subordinated debt or preference share issues can contribute to greater market discipline. Moreover, asset securitisations allow a portion of risks to be transferred towards other investors, thereby contributing to better risk management. Despite the challenges ahead for Spanish institutions, their resilience was heightened in 2006. Profits – the first line of defence against potential problems – not only increased notably but were also sound. This was reflected in the main income statement margins which, combined with moderate growth in operating expenses, contributed to the favourable dynamics of earnings last year. The return on equity increased once again, maintaining, as earlier indicated, a wide spread over long-term government bond yields. The solvency of Spanish institutions held stable in 2006, with the attendant ratio comfortably above regulatory requirements. This came about, moreover, in a setting in which the sharp growth of activity exerted upward pressure on capital requirements. Earnings in 2006 and solvency levels thus attested to the sound position of Spanish institutions. And this was further corroborated by the available market indicators, by the stress tests conducted during the IMF Financial Sector Assessment Programme (FSAP) and, subsequently, by the loss distribution method, which shows that, even in a highly unfavourable scenario, any losses generated would be amply covered by the capital in the system.
Presentation of the 2020 Annual Report of the Autorité de contrôle prudentiel et de résolution (ACPR) Press conference, Friday 28 May 2021  Speech by François Villeroy de Galhau, Governor of the Banque de France Chairman of the ACPR  Ladies and Gentlemen, It gives me great pleasure to be with you again for the presentation of the 2020 Annual Report of the Autorité de contrôle prudentiel et de résolution (ACPR – Prudential Supervision and Resolution Authority), in the company of the new Vice-Chairman, Jean-Paul Faugère, Dominique Laboureix, Secretary General of the ACPR, and Alain Ménéménis, President of the Sanctions Committee. I would first like to pay tribute to the staff at the ACPR – more than 1,050 men and women whose professionalism is exemplary and recognised – who have worked especially hard, both on-site and remotely, to monitor closely the effects of the economic crisis on financial stability. Exactly a year ago, when we were just at the start of the Covid crisis, I pointed out to you, in this exact same setting, how vigilant we were being and how confident I was, both in the competence of our supervisor and in the resilience of the financial system. Looking back, we haven’t done too badly at all: at this stage, the financial risks are, on the whole, under control, thanks to resilient financial institutions with solid fundamentals (I).