Impact of financial regulation on the long-term financing of the economy by banks

In an interview with the Banque de France, Michel Pébereau analyses the impact of regulatory reforms on banks and their ability to finance the economy. After recalling the specific role of banks in the financing of the economy, he discusses the financial regulations adopted to address the crisis, in particular their origin and their fit with pre-existing financing models, as well as the initiatives taken to stimulate long-term financing. He then analyses the expected and undesirable effects of these financial regulations, by considering each reform and presenting the first observable effects of the current or forthcoming prudential standards notably in terms of new financing channels of the economy. Lastly, Michel Pébereau discusses developments in long-term financing. He focuses particularly on investors, changes in their relationships between each other as well as on developments relating to financing structures.