The powers and governance of the three authorities could also be adjusted to further improve their efficiency, but I do not think it would be useful in the short term to radically change the existing architecture. Greater changes – which could also bring supervision and resolution closer together – could be considered once Brexit has occurred and the Banking Union and the Capital Markets Union are well established. With regard to Brexit, I would like to reiterate a requirement which, in our view, is obvious: clearing operations in euro, for all those of systemic importance, must be located where the supervision of the Eurosystem can be exercised effectively. And after Brexit, we do not see how this could be in London. 1/3  BIS central bankers' speeches  II. The 2016 results of the French banking and insurance sectors In 2016, in a context marked by the low level of interest rates, the major French banks showed solid performances and compared favourably with their European counterparts. Their profitability increased, with their net profit (group share) amounting to EUR 24.3 billion, up 3.1% over the year. Moreover, the French banking system was able to strengthen its higher quality capital, while maintaining the financing to the economy. The ratio of core capital now stands at 13.2% of riskweighted assets, up 60 bp from 2015; this represents a EUR 164 billion increase in capital since 2008 for the major banks, i.e. more than a two-fold increase: an increase of more than 120% in less than 10 years.
Since the turning point last autumn, however, we are witnessing a very gradual rise in nominal long-term interest rates and a “steepening” of the yield curve. This is a more favourable development for bank profitability, which could turn into a weakness in the event of a sudden rise in rates: I do not believe this hypothesis is the most likely. But the ACPR remains particularly attentive to the supervision of the interest rate risk management frameworks put in place by banks. The next stress test exercise, currently underway, will look at different scenarios regarding interest rate variations. As regards the insurance sector, the moderation of the rates paid out on life insurance policies is necessary to preserve their solvency. Luckily, we have observed such a trend in 2016 on eurodenominated products, although the average return remains significant at 1.9%. The low interest rate environment has also prompted a shift in savings towards unit-linked products. Here the ACPR is vigilant as to the commercial conditions of this development. The second challenge is the rise of digital finance. Supporting new players is a priority for the ACPR, which we have materialised by the creation of the Fintech Innovation unit and the Fintech Forum with the AMF. Fintechs bring innovative solutions for customers, which are very welcome, but they must also be attentive to data protection, cyber-security and compliance with anti-money laundering measures. But the digital challenge is not limited to Fintechs.