DGAP-News: Center for Financial Studies at Frankfurt University: CFS Financial Center Index up by 2.4 points
(firmenpresse) - DGAP-News: Center for Financial Studies at Frankfurt University
Miscellaneous
Center for Financial Studies at Frankfurt University: CFS Financial
Center Index up by 2.4 points
19.07.2010 12:30
Dissemination of a Corporate News announcement, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------
CFS Financial Center Index up by 2.4 points
Uncertainty about publication of stress tests
FRANKFURT, 19 July. The CFS Financial Center Index for the third quarter
in 2010 has increased by 2.4 points compared to the last quarter and has
reached 110.4 points. The subindices 'performance' and 'projection', the
evaluation of the last quarter and the forecast of the upcoming quarter,
respectively, have converged once more and for the first time since the
beginning of 2009 they are now at the same level.
The groups of the survey (Financial Institutions and Brokerage, Financial
Sector Service Providers, Supervisory and Academic Institutions, Connected
Enterprises) record a positive trend not only on the aggregate level, but
also on the individual group level. This trend is with +5.3 points larger
for the Financial Sector Service Providers than for the Financial
Institutions with +1.5 points. To a great extent this growth is due to
rising revenue and employment figures. Returns and investments have
remained relatively constant. Within the group of Financial Institutions
one has to differentiate between two types. While banks register a
decreasing amount of jobs (-4.8), the rest of the group of the Financial
Institutions (e.g. asset manager, insurance companies) see them rise
exceptionally (+11.5). The banks, however, record return figures rise by
+4.0 points, while the rest of the group of the Financial Institutions see
them go down by -10.0 points. Looking at the banks, revenues and returns
are trending upwards, while jobs and investments point in the other
direction.
'The results show that unlike the other financial institutions the banks do
not invest, but rather concentrate on better utilising their capacity. This
hesitation seems to be in line with the uncertainty about the planned
regulatory reforms', explains CFS Director Professor Dr. Jan Pieter
Krahnen.
Publication of stress tests: Both support and scepticism
The panellists agree on the fact that the publication of the stress tests
could increase the trust of the market participants, the stability of the
financial system and the influence of the bank supervision. Almost half of
the panellists believe, in addition, that there will be growing demand for
restructuring the German banking system. This view is shared not only on
the aggregate level, but also on the individual group level.
Whether the market participants will correctly assess published stress
tests is controversial. 21 % regard the probability that they will be
assessed correctly as high or very high. 35 % think this probability is low
or very low and expect misinterpretations. Professor Krahnen comments:
'Unless transnational comparability is guaranteed many argue the
calculation and interpretation of the test results will not be of any use.
The uncertainty about the actual design of the tests seems to be highly
relevant, also with respect to a possible recapitalisation strategy.' Most
of the panellists (roughly 63 %) regard it as essential to establish a
strategy for banks which perform weak or fail the stress test, before
publishing the results. A quarter, however, opposes this view. Among asset
managers and insurance companies the number of supporters and opponents is
roughly equal.
Index calculation of the CFS Financial Center Index
The CFS Financial Center Index is based on a quarterly management survey of
currently 400 enterprises of the financial center of Germany. The survey
contains four questions about the participant's view on different business
parameters (transaction volume, profits, employment and investment in
product- and process innovations). The answers to the questions may be
given as 'positive', 'neutral', or 'negative' and a response is requested
for the previous and the current quarter. The index is compiled from
different sub-indices, as all participants are allocated to branch-specific
groups. Within each group, a balance of the share of positive and negative
responses is evaluated and transformed into performance data. These
performance data are then aggregated in order to constitute the CFS
Financial Center Index. Due to construction, the maximum index value is
150, the minimum index value is 50; a value of 100 signalizes a neutral
business sentiment. The survey-panel consists of enterprises and
institutions of the financial industry and selected companies, which profit
from the financial sector.
History and Future prospects
The CFS Financial Center Index is part of the Hessian project 'Financial
Center Monitoring', which is to measure the competitiveness of the
financial center of Germany in a European context. The project is supported
by Helaba, the Landesbank Hessen-Thüringen. More information about the CFS
Financial Center Index, e.g. an overview of the survey and a broad
definition of the German financial center can be found at:
www.financialcenterindex.com.
Profile CFS
The Center for Financial Studies (CFS) is a financially independent
research institute, affiliated to Goethe University Frankfurt. CFS conducts
independent and internationally-oriented research on financial markets,
financial intermediaries and monetary economics and interacts as the German
partner with other international research centers specifically on the
subject of financial market architecture and the role played by banks and
stock exchanges. President of CFS is Prof. Dr. Dr. h.c. mult. Otmar Issing.
Chairman of the supporting association: Dr. Rolf-E. Breuer. Overall
management of the institute is conducted by the directors Prof. Michael
Haliassos, Ph.D., Prof. Dr. Jan Pieter Krahnen, Prof. Dr. Uwe Walz.
Profile Frankfurt Main Finance
In Frankfurt Main Finance, the financial industry, the State of Hesse, the
City of Frankfurt, as well as scientific institutions and the services
sector have joined forces in order to strengthen Frankfurt's position in
competition among the world's financial centres. As of October 15, 2009,
Frankfurt Main Finance has 27 members: Bankhaus Metzler, Commerzbank,
Corealcredit Bank, Crédit Agricole Cheuvreux, Deutsche Bank, die Deutsche
Börse, Deutsche Vereinigung für Finanzanalyse und Asset Management (DVFA),
DWS Investments, DZ Bank, Fides Falk Financial Services, Frankfurter
Sparkasse, Frankfurt School of Finance and Management, Frankfurter
Volksbank, Helaba Landesbank Hessen-Thüringen, House of Finance, ICF
Kursmakler, Interxion, KDB Krall Demmel Business Consulting, the State of
Hesse, Morgan Stanley, P. Keppler Verlag, Royal Bank of Scotland, the City
of Frankfurt, Tata Consultancy Services Deutschland, vwd Vereinigte
Wirtschaftsdienste, White&Case, WHU - Otto Beisheim School of Management
and Wolfgang Steubing AG.
For further information, please contact:
Florian Hense
Center for Financial Studies
Goethe-Universität Frankfurt
House of Finance
Grüneburgplatz 1, HPF H5
60323 Frankfurt am Main
Tel.: (069) 798-30090
Fax: (069) 798-30077
E-Mail: hense(at)ifk-cfs.de
www.finanzplatzindex.de
www.financialcenterindex.com
Josef Schießl
Frankfurt Main Finance e.V.
c/o NewMark Finanzkommunikation
Main Triangel
Zum Laurenburger Hof 76
60594 Frankfurt
Tel.: (069) 94 41 80 26
Fax: (069) 94 41 80 19
E-Mail: josef.schiessl(at)frankfurt-main-finance.com
www.frankfurt-main-finance.com
End of Corporate News
19.07.2010 Ad hoc announcement, Financial News and Media Release
distributed by DGAP. Media archive at www.dgap-medientreff.de and
www.dgap.de
---------------------------------------------------------------------
94333 19.07.2010
Datum: 19.07.2010 - 12:30 Uhr
Sprache: Deutsch
News-ID 24089
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 226 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Center for Financial Studies at Frankfurt University: CFS Financial Center Index up by 2.4 points"
steht unter der journalistisch-redaktionellen Verantwortung von
Center for Financial Studies at Frankfurt University (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
