Financing the economy in the new regulatory environment.

Summary In response to the crisis, financial reforms are underway to subject banks to enhanced prudential requirements. Under the Basel III accords, banks will have to hold more and better capital, and will also have to ensure the stability of their resources and the liquidity of their assets. Insurance companies, another important player in the financing of the economy, will also have to comply with increased capital requirements (Solvency II). These reforms, which are essential for strengthening the stability of financial systems, will require adjustment efforts on the part of financial institutions and will likely have an impact on the financing of economies. Will they make it more difficult, rarer or more expensive? Should we fear a disintermediation of financing and a transfer of risks that banks and insurance companies will no longer be able to take to savers who are much less inclined in Europe than in the United States to make long and risky investments? Or will the risks be transferred to other less supervised actors, in which case the shadow banking that the regulator is trying to reduce would, on the contrary, increase? These are the questions that this report aims to answer. [4th cover].