Can Finance Better Serve the Economy?

The financial sector’s added value to the economy primarily lies in its impact on productivity gains. In particular, to the way in which it gathers savings to redistribute them towards investment opportunities to ensure a sustainable, strong and inclusive growth… Which implies long-term commitments with economic actors demanding capitals and reasoned risk taking; conditions for which progress is still possible.

In this regard, financing the environmental transition is a major issue.

However, the efficiency of finance can also be measured by looking at the costs that its functioning entails for the rest of the economy. In spite of various sectorial innovations, this cost has remained stable over the long term. In addition, we need to take into account the costs induced by financial crises.

We thus need to reflect on the measures that can enhance the financial sector’s contribution to the economy, and more generally welfare. What can we expect from more competitive structures on these issues? From a novel conception of their regulation and/or their governance? What can the rapid development of Fin Tech bring to solve this problem?