DGAP-News: Center for Financial Studies (CFS) at the Goethe University Frankfurt: CFS Financial Center Index decreases
(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:
CFS Financial Center Index decreases
21.07.2011 / 08:30
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Press release
CFS Financial Center Index decreases
Banks and financial service providers more cautious / Financial sector
opposes EU Commission's financial transaction tax
FRANKFURT, 20 July. The business climate of the German financial sector has
clouded in the second quarter compared to the last quarter. The CFS
Financial Center Index has dropped by 2 points. Reaching 113.9 points, the
sentiment, however, is still positive on average, while the expectations
('Prediction') for the coming quarter are slightly better than the current
business situation ('Performance').
All groups of participants in the survey are affected by the downward
trend, albeit to differing degrees. The supervisory and academic
institutions and the connected enterprises encounter a considerable
contraction of their business (-7.6 points). The sentiment of the financial
institutions (the 'nucleus' of the financial sector) decreases to a smaller
degree (-0.4 points) and the financial sector service providers lose 1.8
points.
Financial sector looses momentum
The business situation of the group of financial institutions (111.5
points) has weakened in the last quarter, driven almost exclusively by
declining profits (-7.1 points). Revenues, employment figures, and
investment have gone down only moderately. The group remains confident
expecting revenue to rise by 3.9 points, however, abstains from hiring more
staff.
The financial sector service providers (121.2 points) have increased the
number of staff. Despite falling short of their expectations for their
overall business situation, yet again (-5.4 points), they envisage revenue
and profits to rise. The outlook is slightly more conservative (122.3
points expected for Q3 2011 compared to 125.5 for Q2 2011), but still on a
very high level.
The considerably clouded business situation of the two other groups - the
supervisory and academic institutions and the connected enterprises (107.4
points) - results from revenue and investment numbers falling
substantially. Participants of these groups are more cautious as their
overall expectations lie below the current situation, mainly due to weaker
prospects for revenue and profits.
'The decline of profits intensifies, while the gap between banks and
service providers has also grown. This trend is possibly to be seen in
light of regulating measures that are already decided or yet to be passed
and that will affect the two groups in very different ways', explains CFS
Director Jan Pieter Krahnen.
Financial sector not in favor of European financial transaction tax
The plan of the European Commission to introduce a financial transaction
tax on the European level faces opposition among the participants of the
special survey. Especially the financial institutions are against the tax.
A majority of the participants (51%) objects the introduction, 22% are
indifferent and only 16% are in favor of the European financial transaction
tax.
The opposition of the financial sector is in line with the widespread
expectation that the financial transaction tax will not affect the price
volatility of the financial markets. 47% of the respondents do not expect
the tax to have any volatility reducing effects, as intended by the EU
Commission. Only 15% believe price volatility will go down, however almost
the same amount of participants of the survey expect prices to become more
volatile (see Figure 2). The survey also shows that those that expect
prices to become less volatile as a consequence to the introduction of a
European financial transaction tax also propose the tax. Respondents that
do not back the tax are mostly - but not exclusively - those that expect
price volatility in the financial markets to increase.
The panel also opposes the plan of the Commission to use the revenue
generated by the financial transaction tax to partly finance the EU budget
and, therefore, also provide the EU with some tax autonomy (52%). 18% of
the respondents regard this as either neutral or positive.
'The responses show that the arguments in favor of the introduction of a
European financial transaction tax have yet to be explained by the
authorities. Only a minority are convinced by the argument that financial
markets would become less volatile', says Krahnen.
www.financialcenterindex.com - for figures 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 Triangel main-finance.com
Zum Laurenburger Hof 76 www.frankfurt-main-finance.com
60594 Frankfurt
End of financial news
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132705 21.07.2011
Datum: 21.07.2011 - 08:30 Uhr
Sprache: Deutsch
News-ID 34654
Anzahl Zeichen: 0
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Kategorie:
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