Contenu du sommaire : La crise financière

Changes in Financial Systems Financial systems are substantially changing. Operations are increasingly diversified and internationalized. The financial function plays a growing part in firms and banks. In France, moreover, there is a change from adjustment by rate regulation and credit control to adjustment through market mechanisms. Several reasons can explain such evolutions. New needs were generated by the crisis, and balance of payments deficits can be seen in other countries than before. The impact of technological innovation and of public policies should also be accounted for. This financial "new deal" raises quite a few questions. Is the development of the financial system an obstacle to economic growth? And is today's financial system intrisically instable? Finally, are these mutations going to be reversible or irreversible?

The Unified European Market at Stake The achievement of a unified european market is a necessity. Eventually, any financial intermediary in Europe should be able to make business in other countries without being submitted to other authorities than his own country's. The European Commission's approach is based on three points. Firstly a free circulation of capital, which implies the end of safeguard clauses, the freedom of emitting and buying securities, and a last step that should suppress all remaining restriction on financial loans, on monetary market operations, and on deposits and assets on bank accounts. Second point, the free circulation of services and financial products. This is already done for securities and transborder operations, according to the Luxemburg Court's decision on december 4th 1986. The banking sector-especially mortgage credit- is under study. The third point consists in harmonizing legal regulations, consumer protection and information, and electronic fund transfers, and protection of public savings. The success of european financial integration depends on three main conditions. First, each country should work towards this opening; France's efforts in this direction are quite important. Second, there should be a harmonization from the top, by means of protection of savers and by avoiding, when difficulties arise, a return to national protectionist measures. The third condition is that all aspects must be considered important for the making of Europe. No sectors can be neglected. The monetary dimension, especially, should not be left apart.

On the Proper Use of Requirement Reserves Requirement reserves were established in France in 1967 only, and have been used since for various purposes. First they were based on deposits, then were extended to credit. From 1972 to 1986, a progressive rate turned them into a penalty, as an auxiliary of credit control system. Together with the regrouping of capital market, they are becoming a tool for monetary policy. Requirement reserves are a means to increase the bank's need for liquidity, as well as the uncertainty about the costs of such needs. In a way they have an effect on banks's credit supply, by prompting them to cut on new credits and seek for non monetary income. In France, their main part was to act on credit cost. They could not actually slow down monetary expansion. Proportional requirement reserves therefore were somewhat forgotten, when in 1985 their rates were increased because of the financial mutation - creation of financial instruments, opening of markets, thanks to which this kind of monetary control became obsolete. The Banque de France intend to use them for two reasons. First of all, they can contribute to the central bank's interest rates policy. On the other hand they contribute to modify the attitude of banks. It can incite them to manage their assets and liabilities (to reduce the amount submitted to reserves, i.e. the monetary income) in a way compatible with the main issues of monetary policy. Credit institutions will have to assess their liquidity by selling securities on secondary markets, and no longer by "refinancing" (which comes down to an indebtment to the central bank). So doing, it helps suppressing money, and diminishing the base of reserves and the demand for money. Through their action on money markets, credit institutions would then back up an open market policy. We haven't reached this point yet. We stand in a transitory situation: indeed even if requirement reserves decline, there are still many instances of them. In the perspective of the european financial market, the main point will be to prevent them from creating unequal competition between different national systems. by selling securities on secondary markets, and no longer by "refinancing" (which comes down to an indebtment to the central bank). So doing, it helps suppressing money, and diminishing the base of reserves and the demand for money. Through their action on money markets, credit institutions would then back up an open market policy. We haven't reached this point yet. We stand in a transitory situation: indeed even if requirement reserves decline, there are still many instances of them. In the perspective of the european financial market, the main point will be to prevent them from creating unequal competition between different national systems.

Currency and Finance in West Germany With a new interest rate policy now taking place in France, a look at West Germany's experience can be interesting, since this kind of regulation has been in use there for decades. The german financial sector is led by big banks which deal on money markets as well as on credit market and within big compagnies, so that german monetary policy can work by acting on bank liquidity only. In using quantitative instruments the Bundesbank has complete control over interest rates, and is able to separate interest rates evolution from monetary policy when necessary. However, as can be seen in the last few years, there are some difficulties, for this kind of policy in handling domestic liquidity when strong capital movements happen.

Governments and the Dynamics of European Venture Capital A few years after the US, venture capital is developing quickly in Europe since the beginning of the 80s. Although the structures and methods look like those created in the United States, venture capital in Europe develops its own peculiar way, due to local socioeconomic conditions. For the same reason, venture capital is not as brilliant in Europe as in the States, in terms of profitability of invested funds and reproduction of industrial scape. However, US risk financing - as a counterpart to its success - has shown some excesses and limits. European venture capital could therefore tend towards homogeneous systems between national markets. This is an aim to be reached through the making of the European financial market in 1992. However, today in Europe venture capital is rather heterogeneous, and there is scarcely any contact between traders from different countries. If the increase of activity is exponential in most countries, the concept of a "European venture capital market" has no reality, in spite of many attempts particularly at executive level in the European Community.