WikiStage ESCP Europe 8 - Paris. Paris, France, 2016

WikiStage ESCP Europe - Paris campus www.wikistage.org “We need a quick, strong and global energy transition based on renewable energy and energy efficiency program anywhere.” “A lot of assets are going to be stranded because of the 2 degrees scenario.” “When you are a bank, you have a key role in financing energy transition. You have to flow money to renewable energy and energy efficiency programs.” “We at BNB Paribas want to finance the electricity sector so that is in line with the 2 degree scenario and we want to be transparent about that.” “Since the enactment of this policy we have refused to finance 30 coal fire power plants, because they did not stick to the best available technologies. These power plants represent around 30% of French CO2 emissions.” “Last year, before COP21, we decided to reinforce our commitments: - We are not going to finance any more coal mine anywhere in the World. - We are not going to finance any more coal fire power plant in the high income countries. - In the other countries, we have reinforced our very stringent criteria according to which we assess the feasibility to finance a coal fire power plant. - On the other side, we have decided to double our exposure to renewables by 2020; to rank among the top 3 issuers of EURO-dominated green bonds by 2018; and to invest 100 million EUR into start-ups that innovate in energy transition. We also a strong focus on forests, very important carbon sinks, not to mention the services provided from the forests. “

WikiStage ESCP Europe 8 - Paris. Paris, France, 2016

WikiStage ESCP Europe, Paris campus www.wikistage.org “Can you actually say that the financial industry is broken, evil or destructive? Can you say that debt is necessarily a bad thing?” “Financing is a very important factor for a strategy of growth.” “I had the opportunity to manage a family business in Mexico. Mexico has a huge problem, because the economy is lacking access to finance sources, so small and medium sized companies do not have access to financing sources. (…) If these companies do not have sufficient financing, most of them will stay small, regional without possibilities to expand.” “Lack of financing hurts the economy.” “However, too much debt is also bad for the economy. There are some signs right now that there is a real estate bubble forming up in China which might explode and there is a huge amount of student loans outstanding in the United States.” “Even today in 2016 banks are still struggling with capital requirements, reduced balance sheets and increased regulatory burden, so they are not lending.” “Quantitative easing (printing money to buy back debt) has not reached the small and medium sized companies” “Institutional investors have to put their money somewhere because one day they need to pay for your retirement. Scarcity of bank lending, changing regulation and investors’ need for yield has led to the disintermediation of the finance sector and alternative lenders have been growing and trying to fill this lending gap.” “True, there have been excesses in finance. There have been false incentives in some cases, there have been bad people. But bad people exist everywhere, in every industry – look at Enron, FIFA or Volkswagen.” “If all firms have access to financing in different stages of their lifecycle, in different forms and in a measured way – this will lead to more professionalized firms, better reporting structures, more transparency and that will lead to growth and economic prosperity.”
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WikiStage ESCP Europe 8 - Paris. Paris, France, 2016

ESCP Europe, Paris campus www.wikistage.org “Finance is risk and reward – you have to be rewarded for the risk that you take” “There are two types of finance: the ‘good’ one and the ‘other’ one which I won’t call the bad finance. The good finance is long term oriented, developing links with the real economy, taking risks and getting rewarded for the risks.” “The ‘other’ type of finance is more linked to financial markets, which is more short term oriented, whih implies trading and a lot of volatility. This type of finance, which I would not call ‘bad’ because it is necessary, has to be highly regulated. ” “The real economy was not in such a bad shape in 2008 – it was a crisis in financial markets.” “When you look at the subprime market – it is a virtual economy, it was very difficult to go from the bond you own and the real economy. This has created the crisis.” “This type of finance has to be highly regulated, in order to cope with volatility.” “The crisis has generated a different (peer-to-peer) financial market.” “After 42 years in finance, I believe there is something good in finance, in terms of job creation and infrastructure.”

WikiStage ESCP Europe 8 - Paris. Paris, France, 2016

WikiStage ESCP Europe, Paris campus www.wikistage.org "The majority of the middle management fail to adequately take culture and conduct matters into account and offer refer to traditional performance criteria such as revenue profits return on equity." "Situation has not improved; many central bankers, high executives are claiming that situation has improved, but the result is not there." "Financial industry plays an important role in allocating capital." “When bankers tell me how honest they are I have a small doubt.” “The people on top believe they are very honest themselves, but fail to communicate their ethics to the lower levels.” “Many of Central Bankers and high executives claim that the situation is improved and that the situation will not be like it was in 2008 but the result is not there.” "What can we do? The problem is not a few bad apples. In many of the banks we caught, the executives said: Don’t be mistaken, these violations were made by a few very dishonest people, we got rid of them and now everything is straight again. Well, I doubt it. I think the evil is beyond that, beyond individual behavior." "The purpose of finances is to serve the real economy." "Securatisation is transfering the risk from the lending bank to the public at large." "The lobbying by the banks is too powerful in finance. In Finance Watch we have three lobbyists in Brussels, while the banks have 900. And whenever legislation is to be passed in Europe, the bank lobbyists come with a document already prepared and say it is much to difficult for them to understand and that is what they should vote for." "In France in 2013 the government was lobbied by big banks and in the end the French banking law was really made to destroy what the European project meant to be." "High frequency trading is how you can buy or sell securities in a fraction of a second. In a second you can have 50, 60 trades. This is of course open only for very large institutions. This is not open to the rest of the people. Then you ask the bankers what is the justification and they tell you it is for liquidity purposes. However, liquidity purposes in fraction of a second, it is not serious." "I know banking is very important and useful for the society, the question is: are some of the activities like high frequency trading useful for the society or not?"
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