DGAP-News: Center for Financial Studies (CFS) at the Goethe University Frankfurt: Financial sector further on the rise: CFS Financial Center Index up by 2.5 points
(firmenpresse) - DGAP-News: Center for Financial Studies (CFS) at the Goethe University
Frankfurt / Key word(s): Miscellaneous
Center for Financial Studies (CFS) at the Goethe University Frankfurt:
Financial sector further on the rise: CFS Financial Center Index up by
2.5 points
26.10.2010 / 17:25
---------------------------------------------------------------------
Financial sector further on the rise: CFS Financial Center Index up by 2.5
points
Service providers create jobs / Financial sector expects a stabilizing
effect from Basel III / Banks estimate a decline in returns
FRANKFURT, 26 October. The CFS Financial Center Index has moved up by 2.5
points compared to the last quarter and has reached a level of 112.9
points. Continuing the upward trend since April 2009, the index is now 13
points below its record high of 125.7 points that was registered in January
2007. The rise is reflected in both sub-indices 'performance' and
'projection', which have moved up in equal measure.
The positive trend is recorded among all branch-specific groups of the
survey (financial institutions and brokerage, financial sector service
providers, supervisory and academic institutions, connected enterprises)
and across all areas of value creation (revenue, profits, employment,
investments). Most striking is the above-average growth (+ 4.2 points) in
the group of financial sector service providers, whereas financial
institutions comparatively underperform with a minor increase of 1.2
points. Service providers such as accountancy firms and consultancies have
profited from an overall strong Q3 (7.2 points) with employment figures
going up by 11.7 points. This rise, however, is not expected to continue.
The financial institutions are less optimistic and remain especially
reluctant in hiring new staff.
The international importance of Germany as a financial center has increased
by 6.0 points. But this figure has considerably fluctuated recently and its
trend points rather downwards since the beginning of 2009.
'The results show that, in light of a strengthening economy, accountancy
and consultancy firms, and other financial sector service providers have
invested in new capacities. In contrast to this, banks have shown declining
returns and employment figures, which seem to coincide with the regulatory
reforms of Basel III', explains CFS Director Professor Dr. Jan Pieter
Krahnen.
Capital standards and transition period of Basel III earns approval
With regard to the stricter capital standards under Basel III, the
financial sector very much agrees on the consequences. The majority expects
higher levels of stability, credit-tightening effects and lower returns,
and a lower risk appetite of banks. The same question was posed to the
panel a year ago and the results prove to be very similar. In fact, the
results only reveal a difference in the opinion about the stabilizing
effects that are expected to arise from Basel III (77% of today's panelists
expect stabilizing effects compared to 67% last year). The survey showed no
major discrepancies between the various groups.
Most panelists think that the transition period of Basel III is
appropriate. However, 10% of the panelists argue that the period is too
short, while 10% say that it is too long. This last group claims that there
are still imminent risks arising from systemic risk. The share of panelists
who regard the amount of time as appropriate is comparatively higher among
banks. Panelists who consider the credit supply being at peril argue that
the transition periods are too short.
Panel respondents argue that additional demand for regulatory action exists
mainly in 3 areas (Figure 2): bank restructuring/'too-big-to-fail' problem
(32%), derivatives/securitization (24%) and systemic risk (23%). The survey
groups, however, differ in the way they prioritize those areas. Banks
regard systemic risk as the most eminent issue to be dealt with (33%),
while non-banks such as asset managers and insurance companies rather see
the highest demand for regulatory action within the area of
derivatives/securitization (31%).
www.financialcenterindex.com - for graphs and further information.
For any questions, please contact:
Florian Hense Tel.: +49 69 798-30090
Center for Financial Studies Fax: +49 69 798-30077
Goethe-Universität Frankfurt E-Mail: hense(at)ifk-cfs.de
House of Finance www.finanzplatzindex.de
Grüneburgplatz 1, HPF H5 www.financialcenterindex.com
60323 Frankfurt am Main
Josef Schießl Tel.: +49 69 94 41 80 26
Frankfurt Main Finance e.V. Fax: +49 69 94 41 80 19
c/o NewMark Finanzkommunikation E-Mail: josef.schiessl(at)frankfurt-
main-finance.com
Main Triangel
Zum Laurenburger Hof 76 www.frankfurt-main-finance.com
60594 Frankfurt
End of Corporate News
26.10.2010 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------
101525 26.10.2010
Datum: 26.10.2010 - 17:26 Uhr
Sprache: Deutsch
News-ID 32411
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 208 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"DGAP-News: Center for Financial Studies (CFS) at the Goethe University Frankfurt: Financial sector further on the rise: CFS Financial Center Index up by 2.5 points"
steht unter der journalistisch-redaktionellen Verantwortung von
Center for Financial Studies (CFS) at the Goethe University Frankfurt (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
