The regulatory landscape remains complex for banks, as they not only need to comply with existing regulations but also adhere to new regulatory initiatives, some of which affect established operating or business models. Banks in France operate under regulatory framework of the European Union, national and international bodies. 4.2 REGULATION OF CROSS BORDER PAYMENTSBusinesses that transfer money (money transmitters) generally must follow the EU funds transfer regulations in order to reduce the risk of money laundering and terrorist financing. Regulation (EC) No 924/2009 and SEPACross border payments in the EU are governed by “Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community.” The regulation describes electronic payment transactions as including credit transfers, direct debits, withdrawals from automatic teller machines, payments by debit and credit cards, as well as cash transfers. The payments concerned are to be made in euros or in the national currency of EU countries wishing to apply the regulation. Banks have to provide their clients with an international bank account number (IBAN) to be used when making cross-border electronic payment transactions. Banks also have to give them a bank identifier code (BIC). These transfers therefore cost no more than transfers made within the same country.The single euro payments area (SEPA) harmonizes the way cashless euro payments are made across Europe. It allows European consumers, businesses and public administrations to make and receive payments under the same basic conditions. Whilst regulations are essential for maintaining financial sector stability and managing risks, they can lead to an increase in structural costs (mostly through compliance), which in turn affects competitiveness. Figure 1 Map of Major Regulations affecting cross border payments.4.3 ECONOMICAL FACTORSEconomic growth will remain robust at an annual pace of around 1¾ per cent in 2018-19 thanks to stronger external demand, a rebound in tourism, robust business confidence and job creation. Cuts in business taxes and labor market reforms on going in France by Emmanuel Macron government should further support investment and employment.Despite reductions in business and capital income taxes, stronger economic growth and some spending restraint should help to bring the budget deficit below 3% of GDP. Financial-sector vulnerabilities are limited, and in spite of relatively high and still rising public debt stress tests indicate that the banking sector is resilient. Less than 4% of loans are non-performing, credit conditions are favorable, and lending is rising faster than in other big euro area economies. Both household and business-sector indebtedness are increasing; the latter exceeded 70% of GDP at end-2016 compared to a euro area average of 63.5%. If this trend continues, it could make enterprises vulnerable to faster-than-expected interest rate increases.