International Seminar“DO SAVINGS HAVE A ‘VOICE’ IN EUROPE?”Financial industry representation in Europe

and role of Financial Centers and Federations

Rome, June 5th 2015

LUCIANO MONTIAdjunct Professor of European Union PoliciesLUISS Guido Carli University – Rome (IT)

2

Two researches and key results

(A) Representation of the financial industry and index

B) New ways of representation in the financial market

3

(A) The domestic impact: the institutional representative bodies monitored

GermanyFrance UK Spain Sweden Finland Poland Italy0

1

2

3

4

5

6

4

(A) Taxonomy and main indicators for domestic index representation of the financial industry

Sectorial relevance in the country labour

market

Number employes NACE Rev. 2 Section J

(65-66-67)

Number employes NACE Rev. 2 Section J

(65-66-67) vs total country labour market

Gross value added

Financial business gross value added vs Country Gross value

added

prodution units NACE Rev. 2 Section J (65-

66-67)

Sectorial representation

represented companies vs total

companies in Number employes

NACE Rev. 2 Section J (65-66-67)

integrates services to customers and stakeholders

5

(A) The domestic impact: the pondering system

Domestic impact

In the labour market

Contribution to national gross value added

Level of representation

High Equivalent or superior to 3,5% of total labour market

90% equivalent or superior to the average financial sector contribution to gross value added in EU27 countries

80% or more of financial comp. represented by the single association or at the whole. At least 10 keys services provided by the associations.

Medium Equivalent or superior to 3% of total labour market

80% equivalent or superior to the average financial sector contribution to gross value added in EU27 countries

70% or more of financial comp. represented by the single association or at the whole or at least an association representing more of 90% of the companies of the sector. At least 8 keys services provided by the associations.

Low Less than 3% of total labour market

Less than 80% of the average financial sector contribution to gross value added in EU27 countries

Less than 70% of financial comp. represented by the single association. Less than 8 keys services provided by the associations.

6

(A) Represented companies - % of banks (yellow) and insurances (black) operating in the country

GERMANIA FRANCIA REGNO UNITO

SPAGNA SVEZIA FINLANDIA POLONIA ITALIA0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

90%

59%

67%

27%

35%

91%95% 95%

81%

90%88% 86%

90%

46%

11%

70%

Germany France UK Spain Sweden Finland Poland Italy

7

(A) The domestic impact: key services monitored

DOCUMENTATION•Reports•Discussion papers•Position papers•Statistical outlooks

MEDIA•Press release•Press review•Multimedial tools and web •News•Newsletter•Links

SERVICES•Agenda•Relevant laws and

regulations •Glossary•Training services•Reserved areas

8

(A) The domestic impact: key services monitored

Repor

ts

Posit

ion

pape

rs

Stat

istical

out

look

s

Reser

ved

area

s

Pres

s rel

ease

Pres

s rev

iew

Multim

edia

l too

ls a

nd w

eb

News

Newslet

ter

Agend

a

Relev

ant l

aws a

nd re

gula

tions

Gloss

ary

Trai

ning

serv

ices

Links

0

5

10

15

20

25

9

(A) Taxonomy and main indicators for European index of representation of the financial industry

Gross value added of financial

corporate business EU27

Gross value added of financial corporate

business/ in the country vs whole

Gross value added of financial

corporate business EU 27

Insurance premiums

collection and asset

managementcountry insurance

premiums collection vs EU 27

insurance premiums

collection whole market

host country asset management vs

EU asset management whole market

Financial business labour market

total employed in the financial

sector vs country labour market

10

(A) The European impact: the pondering system

European impact

Local banks asset relevance vs.EU27 total asset

Local insurance premium market and % of EU27 value added of financial services

Number of employees in the financial sector

High More than 10% total EU27 asset

More than 10% EU 27 insurance premium marketMore than 15% EU27 financial sector value added

More than 1.000.000

Medium Between 5% and 9%

Between 5% and 9% EU27 insurance premium marketBetween 10% and 14% EU27 financial sector value added

Between 1.000.000 and 500.000

Low Less than 5% Less than 5% EU27 insurance premium marketLess than 10% EU27 financial sector value added

Less than 500.000

11

(A) Country bank assets (2011 data)

Germany18%

UK21%

France18%

Italy9%

Spain8%

Sweden2%

Finland 1%

Poland1%

Other countries

EU2722%

12

(A) Premium market share (2011 data)

UK24%

France24%

Germany 22%

Italy14%

Spain8%

Sweden4%

Finland3%

Poland1%

13

(A) The labour market share (banks and other interm. empl. in black; insurance empl. in orange, other activities auxiliary to intermediation empl. in yellow)

GERMANIA REGNO UNITO

FRANCIA ITALIA SPAGNA POLONIA SVEZIA FINLANDIA0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Germany UK France Italy Spain Poland Sweden Finland

14

(A) INDEX OF ISTITUTIONAL REPRESENTATION OF THE FINANCIAL INDUSTRY SECTOR

UK GERMANY FRANCE ITALY POLAND SPAIN SWEDEN FINLAND0

10

20

30

40

50

60

70

DOMESTICEUROPEANTOTAL

15

(B) The survey on new ways of representation of financial industry

(FFFS and FeBAF are considered also in research A)

159

1317

16

(B) The survey on new ways of representation of financial industry

Respondent Organizations Country

City of London United Kingdom

Federation of Finnish Financial Services (1) Finland

Federazione delle Banche, delle Assicurazioni e della Finanza (1)

Italy

Frankfurt Main Finance Germany

Luxembourg for Finance Luxembourg

Munich Financial Centre Initiative Germany

Paris Europlace France

Scottish Financial Enterprise United Kingdom

Spain Financial Centre Spain

(1) considered also in research A

17

(B) Legal status (percentage of respondents)

public13%

private limited company/GEIE

38%

no profit associ-ation50%

18

(B) Partnership (percentage of respondents)

all eco-nomic

systems25%

financial industry and services only

50%

public in-

volve-ment25%

19

(B) Organization and budget (key figures)

150.000 euro 3 empl.

1.000.000 euro10 empl.

10.000.000 euro50/60 empl.

20

(B) Key interests

CMU, Financial regulation and

structural reform

Financial local

market promotio

n stability

and growth

Data protection and digitalization

Int. relations

21

(B) Permanent representation in Brussels or in extra EU countries

NO YES0

1

2

3

4

5

6

7

8

22

(B) Relevance of lobbying activities (number of answers)

More than 50% 50% Less than 50%0

1

2

3

4

5

6

23

(B) Relevance of lobbying activities (areas by nr. of answers)      

Domes

tic

Euro

pean

leve

l

Inte

rnat

iona

l

No lo

bby

activ

ity0

2

4

6

8

24

(B) Interest in permanent coordination (number of answers)

Yes Only for selected items

No0

1

2

3

4

5

6

7

8

25

Key remarks

The growing role of financial industry in country and EU exit strategies calls for an increase of the domestic and European index of representation

The domestic index could be increased enlarging the base of representation both vertically (major number of financial industry companies represented) and horizontally (new forms of representation)

The European index will increase if new forms of networking are conceived

The new forms of representation could be hardly classified but the opportunity of a networking is positively accepted by respondents

26

THANK YOU

This presentation is avalaible here

http://www.researchgate.net/profile/Luciano_Monti/publications