Excess of Saving and Lack of Investment: Which Solutions?

François Villeroy de Galhau Gouverneur, Banque de France

The European economy is facing a real challenge regarding the financing of its growth opportunities. It needs to diversify corporate financing, channel households savings towards long-term and riskier investments and achieve a genuine European capital market. This should be achieved through a real « Investment and Financing Union ». Setting the conditions of an efficient capital allocation of the European financial system is essential to support productive investment. Hence a new significant increase of capital requirements for the banking system must avoided. Increasing equity financing of corporations demands a modification of the saving fiscal rules and the supply of new saving products for households. Financial regulation also has to guarantee a plurality of the different capital financing channels and a better control of the shadow banking institutions is necessary to achieve its stability.

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1   Lire le rapport sur le site : www.gouvernement.fr/sites/default/files/document/ document/2015/10/ rapport_sur_le_financement_de_linvestissement_des_entreprises.pdf.

2   Groupe des gouverneurs de banques centrales et des responsables du contrôle bancaire, organe de gouvernance du Comité de Bâle.

3   TLTRO : targeted longer term refinancing operations ou opérations de refinancement ciblées à long terme.

4   EIPOA : European Insurance and Occupational Pensions Authority ou Autorité européenne des assurances et des pensions professionnelles.

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