Bavaria: center of international finance

Centered in Munich, Bavaria's financial community is one of the most important in Europe. The country-best market capitalization of the companies headquartered in Munich makes the city's stock exchange one of the most important ones in Germany. These companies form the node of a business community whose performance and size are two reasons why Munich regularly tops the rankings of Germany's cities. Two other factors: sustained and sustainable prosperity and growth, and an infrastructure of innovation.

News

Munich Financial Centre Initiative Position Paper on the occasion of the visit to Brussels on October 14th/ 15th, 2015

Table of contents

1. The EU´s capital markets union and how it would impact upon SMEs
2. Basel III follow-up regulations
3. Reform of bank structures - banks segregated by activities
4. Deposit security in Europe
5. Ramifications of digitalization

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Financing the Real Economy in the Capital Markets Union Era - Recommendations for Policy Action

Report commissioned by the Munich Financial Center Initiative (FPMI)

This report deals with the significance of the Capital Markets Union (CMU) for corporate finance. It begins by evaluating the status quo with regard to capital market-oriented and bank-based corporate finance in Germany. The subject matter and background of the CMU are then illuminated and the CMU is subjected to a qualitative analysis. The last section of the assessment features recommendations for action derived from the analysis.

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fpmi rejects Commission's proposal for an EU savings account

Munich Financial Center Initiative (known by its German acronym of “fpmi”) regards the introduction of an EU savings account as being not conducive to the assurance of the long-term financing of the European economy. Such an account would feature a rate of interest on savings guaranteed by the EU. It would constitute a distortion of competition, and would also cause a transferring of funds to these accounts. This, in turn, would further constrain the ability of private, savings and cooperative banks to provide credit.

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fpmi: alterations needed in planned directive on deposit insurance

It was three years ago that the EC Commission made its initial proposal on the revamping of the deposit insurance directive. This work has been resumed in Brussels. The directive is to formulate specifications for the national-level systems charged with the protection of the deposits consigned by savers to banks in cases of the latter's insolvency. In-depth differences persist among the EU Parliament, EU Commission and Council.

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fpmi inside: “more than guardedly optimistic”

The eleventh “fpmi inside” was held on the premises of the Munich Stock Exchange. At the event, Jürgen Michels, the chief economist at BayernLB, took a look at what’s coming in 2014. As a believer in straight talk, he reported being more than “guardedly optimistic”.  He isn’t, however, closing his eyes to possible perils.

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Low interest rate phase contains considerable risks

Interest rates remain low. Over the short term, this phase has made doing business easier. Over the medium and long term, this phase will give rise to considerable risks. These will be faced by consumers, banks, insurers and the rest of the economy. It is for this reason that Munich Financial Center Initiative (known by its German acronym of “fpmi”) regards the preparation of an exit strategy as being urgently necessary.

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