Bavaria: center of international finance

Munich Financial Center Initiative (known by its acronym in German of "fpmi") is a leading body of advocacy of Bavaria's financial community. The Initiative has some 50 members. They are financial companies (banks, insurers and others), associations and public sector institutions undertaking scientific research. The Initiative has given itself two briefs. The first is making the importance of Bavaria's financial community known on the national and international level. The second is shaping the conditions under which the financial sector operates in the Germany and European-wide spheres. To accomplish the latter, the Initiative compiles position papers on and appraisals of the issues shaping the discourse of the insurance sector and of other components of the financial industry.


Enforcing digital fairness!

More and more transactions are intermediated through platforms that profit from network effects and that lead to the “tipping” of markets due to the “winner takes it all”-principle. Consumers make their choices for private consumption with the help of search engines and comparison platforms – if their decision has not yet been taken by digital assistants such as Amazon’s Alexa. The real suppliers, i.e. the companies providing the goods and services that the consumer ultimately seeks to have, lose access to the consumer. The competition of these suppliers, traditionally seen as a central driver of the market economy, is pushed to the periphery of the platform. The expert opinion at hand provides impulses for the current attempts in the European Union to create a regulatory framework for digital marketplaces.

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fpmi Opinion: Innovation, Variety & Fair Choice

The digitalisation has unleashed enormous potential, reduced transaction costs, enhanced consumer welfare and inspired a new entrepreneurial culture. New technologies and business models lead to a far-reaching modernisation of business.

Notwithstanding the dynamics of digitalisation, the economy is at a turning point: Its fundamental infrastructure is being transformed. Some platforms turn into gatekeepers of the market places of the digital economy. Due to network effects, economies of scale and superior access to data, the success of such platforms becomes self-reinforcing. In a platform economy competition is for the market – not on the market. Markets may be “tipped” and are organised and governed by one or two platforms only.

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European Supervisory Authorities - Room for improvement at Level 2 and Level 3

On behalf of the fpmi the Centre for European Policy (cep) has examined the regulatory role of the European Supervisory Authorities (ESAs) and the EU Commission and produced an Analysis. Cep makes ten recommendations for improving control and scrutiny of the ESAs' activities at Level 2 and Level 3. These recommendations will help to ensure that the ESAs and the Commission comply with four essential principles when carrying out their regulatory work: adherence to the mandate, subsidiarity, proportionality and consistence.

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"The British financial community is welcome in Bavaria"

Munich's financial community is looking forward to welcoming British companies and expatriates!

Munich, 06.07.2016 The British have voted to leave the EU. Many members of the British financial community may now vote to remain part of the EU – by moving from the UK to the Union. Up to 80,000 financial specialists may relocate from London to bases in the EU. "Munich is home to one of Europe's most important financial communities. As is the case with the rest of Bavaria, Munich offers Europe's financial sector and its highly-qualified staff members everything that they need and expect," states Andreas Schmidt, spokesperson for Munich Financial Center Initiative (known by its German acronym of "fpmi") and member of the board of Bayerische Börse AG, which operates the Munich Stock Exchange. Schmidt lists the advantages stemming from being based in Munich and in Bavaria. "Munich has a large-sized and innovative fintech and start-up scene. It is home to several companies forming part of Germany's DAX index of Major stocks. Munich's corporations have a market capitalization greater than that of any other city in Germany. Making doing business easy and pleasant in Munich is its smoothly-functioning infrastructure. It includes Munich Airport, which is one of the world's leading hubs. Munich also features excellent universities and schools - and a world-class cultural scene. The city is embedded in a countryside that is famed around the world for its beauty and four seasons-appeal," Schmidt concludes.

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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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