Speech by Mr Denis Beau, First Deputy Governor of the Bank of France, at the FinTech R:Evolution 2022, organised by France FinTech, Paris, 20 October 2022.

Technological innovation in the market for financial services has given rise to new products, new delivery channels and, most importantly, new providers, such as big techs. These developments are the source of a number of opportunities but may also present certain risks that need to be addressed by appropriate policy action.

The rouble strengthened on Thursday, pulling clear of a more than three-month low against the dollar and heading towards the 63 mark, as volatility sparked primarily by elevated geopolitical risks continued to buffet Russian markets.

EBA issues an Opinion in response to the European Commission’s proposed amendments to the EBA final draft technical standards on Pillar 3 disclosures on ESG risks.

A statement issued on Thursday, 13 October 2022 by the German Financial Stability Committee (FSC) declared that while German financial institutions were well capitalised overall, they should prepare for a significantly altered risk situation. In its statement, the FSC set out its views on the weakening of the economic environment, heightened risks and safeguarding the resilience of the German financial sector.

Energy shortage in Europe intensified by the Nord Stream pipelines blast, which pushed gas prices to record levels, have sent many European companies scrambling to deal with the growing risks to production costs.

The capital position of the Finnish financial sector has remained sound, despite the deterioration of the operating environment. Solvency weakened slightly in the employee pension and banking sectors, but remained strong. In the non-life and life insurance sectors, solvency improved. Due to the changes in the operating environment, the Financial Supervisory Authority (FIN-FSA) is paying particular attention to the management of credit, market, liquidity and cyber risks, the functioning of risk management and corporate governance, as well as the fulfilment of the disclosure obligation.

Covers risks in relation to the collection of deferred payment by exporters,the account receivable by financial leasing companies and the recovery of loan principal and interest by financial institutions.The tenor is normally 2 to 15 years.

Protects investors and financial institutions from economic losses resulting from political risks such as expropriation, exchange restrictions, war, political riot and breach of contract in the country where investment is made. The maximum tenor is 20 years. 　　

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes the second Trends, Risks and Vulnerabilities (TRV) Report of 2022. The Russian war on Ukraine against a backdrop of already-increasing inflation has profoundly impacted the risk environment of EU financial markets, with overall risks to ESMA’s remit remaining at its highest level.

​In February 2022, the Bank of Thailand (BOT) issued the Financial Landscape Consultation Paper on Repositioning Thailand’s Financial Sector for a Sustainable Digital Economy. The Consultation Paper sets the overall direction in developing the financial sector, with the aim to strike a balance between promoting innovation and managing risks in order to support the transition towards a digital and environmentally-friendly economy.

It is the job of financial institutions to manage financial risks and provide suitable products and services to customers. Most are good at this and recognise that balancing broad stakeholder interests is important to remain sustainable and for our financial system to function properly.