Lessons of the financial crisis for the attractiveness of European financial centers

This paper analyses fundamental location factors for the financial industry by investigating the economic significance of market participants’ assessments of location factors and country-specific characteristics over time. A unique data set allows studying the locational attractiveness of financial centers before, during, and after the recent financial crisis. The results reveal that especially dense networks in cluster concentration and governmental support strongly determine a location’s attractiveness for financial institutions, whereas a specialized pool of labor alone without concentration and the level of taxation seem not to be relevant. Financial centers with a strong home market benefit during times of crisis in contrast to offshore centers and vice versa. Overall, financial centers’ attractiveness varies over time, while the decisive location factors stay the same. The findings are not hinged by differences in market participants’ socio-economic backgrounds. Investment fund companies seem to value the attractiveness of a financial center much more than banks, insurance companies, and corporates do

How does the domiciliation decision affect mutual fund fees?

In this paper, we analyze whether the domiciliation decision of mutual funds has an impact on fund fees. To explain the fee price-setting of mutual funds, we consider characteristics specific to funds, fund companies, and countries. We find that fees vary considerably across fund types and countries. Positive impacts of financial market integration can be confirmed, though funds set up under the UCITS directive are more expensive. If funds are sold in multiple countries it drives up fees; however, these higher costs for the investor are outweighed by economies of scale that can be generated if the domiciliation is in a specialized financial center, such as Luxembourg. Larger funds and funds that are set up by specialized or larger fund companies have significantly lower fees

Trends im Retail-Banking : Die Bankfiliale der Zukunft – Ergebnisse einer Umfrage unter Finanzexperten

Kaum ein anderes Geschäftsfeld im deutschen Bankensektor hat sich in den vergangenen Jahren so dynamisch entwickelt wie das Retail-Banking. Bedrängt durch alternative Vertriebskanäle haben viele Filialbanken ihre Kunden auf elektronische Vertriebskanäle umgeleitet. Die Filiale drohte angesichts der hohen Kosten und des intensiven Wettbewerbs am deutschen Retail-Banking Markt lange Zeit ein Auslaufmodell zu werden. Mittlerweile zeichnet sich aber ein Umdenken bei den Kunden und den Kreditinstituten ab. Vor diesem Hintergrund hat das Zentrum für Europäische Wirtschaftsforschung (ZEW) im Rahmen des ZEW-Finanzmarkttests zwischen Januar und April 2008 rund 350 Experten aus Banken, Versicherungen und sonstigen Finanzdienstleistungsunternehmen zu den Zukunftsperspektiven des Filialgeschäfts in Deutschland befragt

What is the wind behind the sails to go abroad? : Empirical evidence from the mutual fund industry

Specific industry factors determining cross-border business set-up in the European mutual fund industry are analyzed to contribute to the understanding of production specificities in the financial industry. The findings indicate that the decision on where to domicile a fund is not primarily driven by traditional cost factors, such as registration charges and labor costs. Network conditions with respect to the knowledge-based production process of mutual funds and the interaction with regulating authorities such as the approval process embedded in the legal framework and the quality of the workforce in a dense specialized cluster matter most. Differences in such network conditions may allow fund companies to set up more innovative and complex funds in a shorter period of time in one country than in other countries. The findings highlight also that the practitioners agree on such network determinants as being most important

Trends im Retail-Banking : Outsourcing im deutschen Bankensektor

Die deutsche Bankenbranche ist mit ihrer schlechten Kosteneffizienz im internationalen Wettbewerb weit zurückgefallen. Der globale Wettbewerbsdruck zwingt die Kreditinstitute, ihre Kostensituation zu verbessern. Die Konzentration auf Kernkompetenzen sowie die Optimierung der Wertschöpfungsprozesse geht mit einem konsequenten Outsourcing von Geschäftsbereichen und –prozessen auf spezialisierte externe Anbieter einher. In den letzten Jahren ist der deutsche Bankensektor wieder in Bewegung gekommen. Durch die Anwendung industrieller Fertigungsmethoden auf den Finanzbetrieb kam es teilweise zu einem fundamentalen Umbau bestehender Strukturen. Die Ergebnisse einer Umfrage unter Finanzmarktexperten weist darauf hin, dass sich der Trend zu Outsourcing in den kommenden Jahren fortsetzen wird. Vor allem einfache, leicht standardisierbare Prozesse werden weiterhin an spezialisierte externe Dienstleister ausgelagert. Inzwischen werden jedoch auch komplexere Bereiche wie das Research in Outsourcing-Überlegungen miteinbezogen

Trends im Retail-Banking: Outsourcing im deutschen Bankensektor

Die deutsche Bankenbranche ist mit ihrer schlechten Kosteneffizienz im internationalen Wettbewerb weit zurückgefallen. Der globale Wettbewerbsdruck zwingt die Kreditinstitute, ihre Kostensituation zu verbessern. Die Konzentration auf Kernkompetenzen sowie die Optimierung der Wertschöpfungsprozesse geht mit einem konsequenten Outsourcing von Geschäftsbereichen und -prozessen auf spezialisierte externe Anbieter einher. In den letzten Jahren ist der deutsche Bankensektor wieder in Bewegung gekommen. Durch die Anwendung industrieller Fertigungsmethoden auf den Finanzbetrieb kam es teilweise zu einem fundamentalen Umbau bestehender Strukturen. Die Ergebnisse einer Umfrage unter Finanzmarktexperten weist darauf hin, dass sich der Trend zu Outsourcing in den kommenden Jahren fortsetzen wird. Vor allem einfache, leicht standardisierbare Prozesse werden weiterhin an spezialisierte externe Dienstleister ausgelagert. Inzwischen werden jedoch auch komplexere Bereiche wie das Research in OutsourcingÜberlegungen miteinbezogen. --

Trends im Retail-Banking: Die Bankfiliale der Zukunft - Ergebnisse einer Umfrage unter Finanzexperten

Kaum ein anderes Geschäftsfeld im deutschen Bankensektor hat sich in den vergangenen Jahren so dynamisch entwickelt wie das Retail-Banking. Bedrängt durch alternative Vertriebskanäle haben viele Filialbanken ihre Kunden auf elektronische Vertriebskanäle umgeleitet. Die Filiale drohte angesichts der hohen Kosten und des intensiven Wettbewerbs am deutschen Retail-Banking Markt lange Zeit ein Auslaufmodell zu werden. Mittlerweile zeichnet sich aber ein Umdenken bei den Kunden und den Kreditinstituten ab. Vor diesem Hintergrund hat das Zentrum für Europäische Wirtschaftsforschung (ZEW) im Rahmen des ZEW-Finanzmarkttests zwischen Januar und April 2008 rund 350 Experten aus Banken, Versicherungen und sonstigen Finanzdienstleistungsunternehmen zu den Zukunftsperspektiven des Filialgeschäfts in Deutschland befragt. --

Chinese pension fund investment efficiency - evidence from CNCSSF stock holdings

China’s pension system is facing a large gap of more than one trillion RMB. The investment efficiency of the social security fund therefore receives widespread attention in academic circles. We collected data of stocks held by the Chinese National Council for Social Security Fund (CNCSSF) from 2004 to 2012 to research the stocks’ investment efficiency, distinguishing between direct investment by the CNCSSF and entrusted investment by fund companies. The results indicate that both components of the Chinese Social Security Fund investment have efficiency drawbacks. Direct investment by the CNCSSF does not obtain excess returns, while entrusted investment reaches an annual excess return of 4.32 percent because more private information is available to fund companies than to the CNCSSF during asset allocation. Further analyses of this paper find, however, that the Chinese Social Security Fund has a significant market-stabilizing effect, which is almost three times stronger than the market-stabilizing effect of entrusted investment. In general, entrusted investment performs better than direct investment with regard to investment efficiency, while direct investment performs better in terms of market stabilization

ρ\rho and K∗K^* resonances on the lattice at nearly physical quark masses and Nf=2N_f=2

Working with a pion mass $m_\pi \approx 150$ MeV, we study $\pi\pi$ and $K\pi$ scattering using two flavours of non-perturbatively improved Wilson fermions at a lattice spacing $a\approx 0.071$ fm. Employing two lattice volumes with linear spatial extents of $N_s=48$ and $N_s=64$ points and moving frames, we extract the phase shifts for p-wave $\pi\pi$ and $K\pi$ scattering near the $\rho$ and $K^*$ resonances.Comparing our results to those of previous lattice studies, that used pion masses ranging from about 200 MeV up to 470 MeV, we find that the coupling $g_{\rho\pi\pi}$ appears to be remarkably constant as a function of $m_{\pi}$.Comment: 16 pages, 8 figures, v2: "and $N_f=2$" added to the title, references updated, some figures replaced, including improved summary plots, alternative parametrizations are considered and analytical continations are performed to determine pole positions on the second Riemann shee

The role of investment banking for the German economy: Final report for Deutsche Bank AG, Frankfurt/Main

The aim of this study is to assess the contributions of investment banking to the economy with a particular focus on the German economy. To this end we analyse both the economic benefits and the costs stemming from investment banking. The study focuses on investment banks as this part of banking is particularly relevant for financing companies as well as the development and use of specific products to support the needs of private and professional clients. The assessment of benefits and costs of investment banking has been conducted from a European perspective. Nevertheless there is a focus on the German economy to allow a more detailed analysis of certain aspects as for example the use of derivatives by German companies, the success of M&As in Germany or the effect of securitization on loan supply and GDP in Germany. For comparison purposes other European countries and also the U.S. have been taken into account. The last financial crisis has shown the negative impacts of banks on the financial system and the whole economy. In a study on the contribution of investment banks to systemic risk we quantify the negative side of the investment banking business. In the last part of the study we assess how the effects of regulatory changes on investment banking. All important changes in banking and capital market regulation are taken into account such as Basel III, additional capital requirements for systemically important financial institutions, regulation of OTC derivatives and specific taxes. --