Regulatory Decision 2024-06 of April 15, 2024: Organization of the General Directorates of the Banque de France

PUBLIC DOCUMENT BANQUE DE FRANCE GOVERNOR'S DECISION R.D. No. 2024-06 of April 15, 2024 Organization of the General Directorates of the Banque de France Concerns the DGSO Section: 0.2.1.

THE GOVERNOR OF THE BANQUE DE FRANCE DECIDES

Article 1: Within the General Directorate for Financial Stability and Operations (DGSO), project management offices are grouped within a single directorate, the DRIME, which takes the name of the Direction for Urbanization and National and European IT Systems (DUNE).

Article 2: The General Directorate for Financial Stability and Operations comprises:

• The Cabinet, which manages the human, financial, and material resources of the general directorate. Its responsibilities cover the administrative management of staff, training, internal communication, social relations, budget management, and management control. The Cabinet is also responsible for real estate development and security matters.

• The Center for Analytical Modeling (CMA), which focuses on consolidating the capacity for anticipation and assessment regarding financial stability by developing quantitative analytical tools, along two major axes:

  • improving the capacity to project and stress-test the exposures and risks of the various entities of the French financial system;
  • strengthening the robustness of the tools by validating existing models, securing their development and usage processes, and developing new models to address specific risks (interest rate risk, liquidity risk, sectoral stress models, climate-related risks, etc.).

• The Directorate of Risks and Operational Compliance (DRCO), which measures, regulates, and controls the risks faced by the Banque de France in conducting its operations. The DRCO is thus tasked with evaluating and defining a framework to manage the market and credit risks of all portfolios and credit operations of the Banque de France; it also participates in defining the regulatory framework for the financial risks of the Eurosystem's monetary policy operations. Furthermore, it analyzes, measures, and prevents operational risks for all DGSO activities and coordinates the permanent control framework of the DGSO. The DRCO also leads the anti-money laundering and counter-terrorism financing framework for the Banque de France as a whole and oversees the compliance function within the DGSO. Finally, it ensures, together with the Bundesbank, the management on behalf of the Eurosystem of a unique and shared platform to value all assets eligible as collateral for monetary policy operations. The Director of the DRCO serves as secretary to the Risk Committee. He is placed under the authority of the President of the Risk Committee, to whom he may refer any questions concerning the risks, results, or performance of the Banque de France's market operations. The President of the Risk Committee sets its objectives and conducts its evaluation, taking the opinion of the General Director for Financial Stability and Operations as necessary.

• The Markets Directorate (DMA), which manages the Banque de France's foreign exchange reserve portfolios, the delegated management of a portion of the ECB's foreign exchange reserves, as well as the management of euro-denominated portfolios (excluding portfolios managed within the framework of monetary policy). It also provides investment services to an international institutional clientele; these services include foreign exchange operations, pricing and hedging of time deposits, securities purchase and sale, and gold operations. It provides back-office activities for the operations associated with the portfolios it manages, those of the institutional clientele, and for monetary policy operations other than credit operations. It acts as the account keeper and custodian for all financial instruments belonging to the Bank and its clients.

• The Directorate for the Implementation of Monetary Policy (DMPM), which is responsible for the decentralized implementation of monetary policy operations (outright purchases and securities lending, credit operations via tender, eligibility processing and management of assets admitted as collateral for monetary policy operations, management of the mandatory reserve system and the segmented remuneration system for excess bank reserves) and the analysis and forecasts related to the monitoring of banking liquidity. It conducts analyses on money and financial markets, as well as on the operational framework of monetary policy. Finally, the DMPM ensures the surveillance of the negotiable debt securities market and the management of the adjudication system for Treasury and European Union securities.

• The Directorate for Urbanization and National and European Information Systems (DUNE), which ensures the development and operational management of shared IT platforms within the Eurosystem. These include the Target2-Securities settlement-delivery platform, applications to manage assets accepted as collateral for Eurosystem credit operations (ECMS), to value all assets eligible as collateral for monetary policy operations (CEPH), and to conduct market operations (MAPS). This project management is carried out, in varying configurations, jointly with the Bundesbank, Banca d'Italia, and Banco de España. The DUNE also ensures the strategic and operational project management of the information systems specific to all directorates of the DGSO. It leads the business continuity and information security framework of the DGSO.

• The Directorate for Innovation and Financial Market Infrastructures (DIIF), which is responsible for the surveillance of market infrastructures operating in France: payment systems, central securities depositories, securities settlement systems, and central counterparties. It maintains the cash accounts of participants in the French component of T2-RTGS. It produces studies and guidelines by analyzing innovation, trends, and market issues in the field of financial market infrastructures. It drives and supports innovation in these areas. Finally, the DIIF contributes to strengthening the operational (including cyber) resilience of the financial sector (banks and market infrastructures), notably through the coordination of national and international crisis management frameworks.

• The Banking Services Directorate (DSB), which is responsible for managing the bank accounts of an institutional clientele including the Public Treasury, other French public entities, foreign central banks, European or international financial bodies. It also offers account management services to the units and social organizations of the Banque de France, as well as to foundations. It provides them with all existing payment instruments (direct debits, transfers, bank cards, checks...), ensures a wide range of banking operations (securities settlement, interest calculations, cash management) and implements the Bank's compliance policy regarding anti-money laundering/counter-terrorism financing and fraud prevention for these operations. It is the owner of the Bank's SWIFT platform. It also manages, on behalf of the State, the bilateral debt consolidation agreements signed by France within the framework of the Paris Club. Finally, it is responsible for the interbank reference files FIB (banking implantation file) and ICS (SEPA creditor identifier).

• The Financial Stability Directorate (DSF), which is responsible for assessing the risks and vulnerabilities of the financial system, defining and implementing macroprudential policy, and drafting and monitoring financial regulation. In this capacity, the DSF ensures the secretariat of the Banque de France's Restricted Financial Stability Committee (CSFR) as well as the co-secretariat of the High Council for Financial Stability (HCSF). The DSF also ensures the secretariat of the network of central banks and supervisors for the greening of the financial system (NGFS - Network for Greening the Financial System), which works towards better management of financial risks related to climate change and the development of green finance.

Article 3: This decision enters into force upon publication. It repeals Regulatory Decision 2023-04. It is published in the official publication register of the Banque de France.

The Governor, François VILLEROY de GALHAU