The document provides an overview of the finance industry in Europe. It discusses how Europe has a well-developed financial sector concentrated in major cities like London. The introduction of the euro has made it easier for households and firms to invest across borders. The financial sector in Central and Eastern Europe is growing due to regional economic growth. European banks are among the largest in the world. The document then examines trends in the industry like deregulation, mergers and acquisitions, and the role of the European Union in facilitating cross-border expansion.
June 2017 - The 2017 edition of the OECD Business and Finance Outlook focuses on ways to enhance “fairness”, in the sense of strengthening global governance, to ensure a level playing field in trade, investment and corporate behaviour, through the setting and better enforcement of global standards. This presentation by OECD's financial markets expert Adrian Blundell-Wignall shows key findings from the publication. Find out more here http://www.oecd.org/daf/oecd-business-and-finance-outlook-2017-9789264274891-en.htm
In the first of a series of reports commissioned by HSBC, we consider the macroeconomic situation in Europe, prospects for growth and the strengths of the continent's economy
This seminar, hosted jointly by the British Embassy and Afi School of Finance, was aimed at companies seeking alternative financing, as well as investors looking for new investment opportunities. It was also of interest to government officials and regulators.
As a result of the financial crisis and global recession public debt burdens have risen to critical levels in a number of Western European countries. Emergency loans from the EU and IMF have eased funding pressures, but have only bought the region time; painful fiscal adjustment and an improvement in competitiveness is required if the region is to enjoy a sustainable recovery.
Eastern Europe, while rebounding through exports and industrial output, will underperform its emerging-market peers in 2010. Business and consumer sentiment in the region is fragile, and its currency and bond markets are vulnerable to contagion from problems in the euro zone or a rise in risk aversion more broadly.
This presentation takes a look at the economic outlook for both Western and Eastern Europe.
POSITION PAPER: Euro Zone Crisis. Diagnosis and Likely Solutions (ESADEgeo)ESADE
Author: Fernando Ballabriga
ESADEgeo - February 2014
Southern euro countries are in a situation of vulnerability due to three factors: their high debt levels, their eroded competitiveness and their difficulties to restart growth. Together, these factors generate a vicious circle which is difficult to exit and which can even degenerate into a self-fulfilling economic downward spiral. This policy brief provides a short guiding tour to the euro zone crisis. It looks at the current situation, the full context conditioning the solutions to the situation, how we got here, and the possible way out. The latter section outlines a set of minimum steps required to make the euro sustainable.
Once a year Intrum Justitia conducts a comprehensive survey of payment habits in Europe. Called the European Payment Index (EPI), it is the largest survey of its kind.
June 2017 - The 2017 edition of the OECD Business and Finance Outlook focuses on ways to enhance “fairness”, in the sense of strengthening global governance, to ensure a level playing field in trade, investment and corporate behaviour, through the setting and better enforcement of global standards. This presentation by OECD's financial markets expert Adrian Blundell-Wignall shows key findings from the publication. Find out more here http://www.oecd.org/daf/oecd-business-and-finance-outlook-2017-9789264274891-en.htm
In the first of a series of reports commissioned by HSBC, we consider the macroeconomic situation in Europe, prospects for growth and the strengths of the continent's economy
This seminar, hosted jointly by the British Embassy and Afi School of Finance, was aimed at companies seeking alternative financing, as well as investors looking for new investment opportunities. It was also of interest to government officials and regulators.
As a result of the financial crisis and global recession public debt burdens have risen to critical levels in a number of Western European countries. Emergency loans from the EU and IMF have eased funding pressures, but have only bought the region time; painful fiscal adjustment and an improvement in competitiveness is required if the region is to enjoy a sustainable recovery.
Eastern Europe, while rebounding through exports and industrial output, will underperform its emerging-market peers in 2010. Business and consumer sentiment in the region is fragile, and its currency and bond markets are vulnerable to contagion from problems in the euro zone or a rise in risk aversion more broadly.
This presentation takes a look at the economic outlook for both Western and Eastern Europe.
POSITION PAPER: Euro Zone Crisis. Diagnosis and Likely Solutions (ESADEgeo)ESADE
Author: Fernando Ballabriga
ESADEgeo - February 2014
Southern euro countries are in a situation of vulnerability due to three factors: their high debt levels, their eroded competitiveness and their difficulties to restart growth. Together, these factors generate a vicious circle which is difficult to exit and which can even degenerate into a self-fulfilling economic downward spiral. This policy brief provides a short guiding tour to the euro zone crisis. It looks at the current situation, the full context conditioning the solutions to the situation, how we got here, and the possible way out. The latter section outlines a set of minimum steps required to make the euro sustainable.
Once a year Intrum Justitia conducts a comprehensive survey of payment habits in Europe. Called the European Payment Index (EPI), it is the largest survey of its kind.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Deloitte global powers of consumer products 2014vishalsingh660
To start a new section, hold down the apple+shift keys and click
to release this object and type the section title in the box below.
Global Powers of Consumer Products 2014
Deloitte Touche Tohmatsu Limited (DTTL) is
pleased to present the 7th annual
Global Powers of
Consumer Products
. This report identifies the 250 largest
consumer products companies around the world based
on publicly available data for the fiscal year 2012
(encompassing companies’ fiscal years ended through
June 2013).
The report also provides an outlook for the global
economy, an analysis of market capitalization in the
industry, a look at M&A activity in the consumer
products sector, and a discussion of major trends
affecting consumer products companies.
After reporting very high growth rates as well as being seen as examples of successful economic transition, the “Baltic tigers” (Lithuania, Latvia and Estonia) are now among the worst victims of the global economic crisis. All three have reported large declines in GDP, income and employment, which threaten the significant development progress made since the mid‐1990s.
Authored by: Michaela Pospisilova, Ben Slay
Published in 2009
The European Council summit brought a "surprisng" conclusion with the agreement on mutualizing EZ banks' rescue; however the roots of the EZ problems are not addressed: economic and competitiveness imbalances.
This Review offers policy recommendations to improve the legal, regulatory and institutional framework for capital markets in Croatia in a way that will foster a resilient and dynamic business environment, help realise the potential of Croatian corporations and give households better opportunities to diversify their long-term savings.
This presentation provides key findings from the 2017 edition of the OECD Sovereign Borrowing Outlook. This includes gross borrowing requirements, net borrowing requirements, central government marketable debt, funding strategies and instruments and distribution channels.
Find out more information at http://www.oecd.org/finance/oecdsovereignborrowingoutlook.htm
This presentation provides an updated overview of the state of global financial markets with a focus on the developments following the COVID-19 crisis and an assessment of market dynamics and downside risks. Find out more at www.oecd.org/finance
These are interesting and uncertain times, and we cannot tell yet where they will lead us. The financial world is changing and it
is to be expected that banking itself – whether globally or in the EU – will undergo a significant transformation. Now is not the
time for concrete predictions, yet we look ahead with optimism and with the confidence that also in the times to come, Europe’s
savings and regionally oriented retail banks will drive economic growth and development, as indeed they always have. The aim
of this report is to work towards this goal by stimulating and contributing to the various relevant debates and initiatives, which
are currently shaping the retail banking sector along various dimensions.
Swedbank was founded in 1820, as Sweden’s first savings bank was established. Today, our heritage is visible in that we truly are a bank for each and every one and in that we still strive to contribute to a sustainable development of society and our environment. We are strongly committed to society as a whole and keen to help bring about a sustainable form of societal development. Our Swedish operations hold an ISO 14001 environmental certification, and environmental work is an integral part of our business activities.
Deloitte global powers of consumer products 2014vishalsingh660
To start a new section, hold down the apple+shift keys and click
to release this object and type the section title in the box below.
Global Powers of Consumer Products 2014
Deloitte Touche Tohmatsu Limited (DTTL) is
pleased to present the 7th annual
Global Powers of
Consumer Products
. This report identifies the 250 largest
consumer products companies around the world based
on publicly available data for the fiscal year 2012
(encompassing companies’ fiscal years ended through
June 2013).
The report also provides an outlook for the global
economy, an analysis of market capitalization in the
industry, a look at M&A activity in the consumer
products sector, and a discussion of major trends
affecting consumer products companies.
After reporting very high growth rates as well as being seen as examples of successful economic transition, the “Baltic tigers” (Lithuania, Latvia and Estonia) are now among the worst victims of the global economic crisis. All three have reported large declines in GDP, income and employment, which threaten the significant development progress made since the mid‐1990s.
Authored by: Michaela Pospisilova, Ben Slay
Published in 2009
The European Council summit brought a "surprisng" conclusion with the agreement on mutualizing EZ banks' rescue; however the roots of the EZ problems are not addressed: economic and competitiveness imbalances.
This Review offers policy recommendations to improve the legal, regulatory and institutional framework for capital markets in Croatia in a way that will foster a resilient and dynamic business environment, help realise the potential of Croatian corporations and give households better opportunities to diversify their long-term savings.
This presentation provides key findings from the 2017 edition of the OECD Sovereign Borrowing Outlook. This includes gross borrowing requirements, net borrowing requirements, central government marketable debt, funding strategies and instruments and distribution channels.
Find out more information at http://www.oecd.org/finance/oecdsovereignborrowingoutlook.htm
This presentation provides an updated overview of the state of global financial markets with a focus on the developments following the COVID-19 crisis and an assessment of market dynamics and downside risks. Find out more at www.oecd.org/finance
These are interesting and uncertain times, and we cannot tell yet where they will lead us. The financial world is changing and it
is to be expected that banking itself – whether globally or in the EU – will undergo a significant transformation. Now is not the
time for concrete predictions, yet we look ahead with optimism and with the confidence that also in the times to come, Europe’s
savings and regionally oriented retail banks will drive economic growth and development, as indeed they always have. The aim
of this report is to work towards this goal by stimulating and contributing to the various relevant debates and initiatives, which
are currently shaping the retail banking sector along various dimensions.
Briefing based on the key findings of my research on the Global Generic Pharmaceuticals Market 2010, covering the developed markets like the U.S, Germany, UK, France, Italy and Spain as well as the emerging markets such as India and China.
Global Generic Pharmaceutical Market - Qualitative and Quantitative AnalysisAiswariya Chidambaram
This report was presented at the Pharma Tech 2013 Conference - India A Game Changer in the Pharma Industry at Ahmedabad, India in December 2013. The presentation highlights the overview of the global generic pharmaceuticals market, with particular focus on the key market trends and challenges by therapeutic areas and geographies including the U.S, EU and India. List of key blockbuster drugs scheduled to lose patent protection between 2010 and 2020 have been included. Additionally impact of regulation on generic drugs by region and strategic recommendations for the success of market participants are also covered in this report.
Fiduciary or paper money is issued by the Central Bank on the basis of
computation of estimated demand for cash. Monetary policy guides the Central
Bank’s supply of money in order to achieve the objectives of price stability (or low
inflation rate), full employment, and growth in aggregate income.
Global Powers of Consumer Products 2013Melih ÖZCANLI
Global Powers of Consumer Products 2013
Engaging the connected customer
by Deloitte, 2013
The opportunity for consumer products companies to manage their brands online, engage with consumers at an individual level, and drive sales through digital channels is significant. The question is how to do it well. Take a look at this year's report to see which consumer goods companies are on the Top 250 list. Then keep reading to see what approaches the industry is likely to take to engage this new, digitally empowered consumer.
Find out which companies are where on this year's Top 250 list by downloading the complete report.
"...as long as the music is playing, you've got to get up and dance. We're still dancing." /Financial Times in July 2007: Charles Prince, Citigroup (former) chief executive/
What measures have the EU (or member nations) taken to mitigate the .pdffathimafancyjeweller
What is the weighted average cost of capital for a corporation that finances an expansion project
using 35% retained earnings and the rest as debt capital? Assume the interest rates are 11% for
equity financing and 23% for debt financing. The weighted average cost of capital is 5785 0 %.
Solution
WACC = cost of equity x equity percentage + cost of debt x debt percentage
WACC = 23% x(1 - 35%) + 11% x 35% = 18.8%.
The first step to succeed or the last chance to survive march 2013Asta Pravilonyte
An invitation to policy makers, financial institutions, entrepreneurs and innovators, academics and other interest groups to share their observations and experience those may reveal factors required to attract investors and remove barriers for sustainable development.
Dedicated to support sustainable development trends those strengthen resilience during financial shocks and contractions of economy.
Deloitte 2014: Global Powers of Luxury GroupsDigitaluxe
Deloitte presents the first annual Global Powers of Luxury Goods. This report identifies the 75 largest luxury good companies around the world based on publicly available data for the fiscal year 2012.
How is IT support needed for business.pdfEminenture
IT support is essential for businesses for many reasons. It helps in maintaining seamless operations, ensuring all technology-related aspects function properly. It plays a key role in troubleshooting hardware and software issues, minimizing downtime, and reducing disruptions in day-to-day activities. IT support specialists also maintain servers, networks, and data storage systems, providing robust infrastructure for smooth operations. In the context of cybersecurity, IT support is indispensable for implementing security protocols, conducting audits, and responding to security breaches. It also helps with compliance to industry standards, preventing legal issues related to data protection and privacy. Furthermore, IT support aids in customizing IT solutions for specific business needs, including software integrations, application upgrades, and data optimization. This customisation improves operational efficiency and scalability. Overall, IT support is a cornerstone for businesses, providing technical expertise, resolving issues, maintaining security, and enabling effective use of technology to support business growth and success.
What is IT Support? Understand its definition, scope, types, tools, and benef...Eminenture
IT Support is crucial for maintaining the health and efficiency of information technology infrastructure. Multiple companies are in the market that ensure end-to-end IT assistance. IT support solutions with Eminenture are its perfect example that encompass inbound and outbound IT assistance regarding the network, hardware, software, installation, and their maintenance, data migration, troubleshooting, and many more like these. Its scope covers hardware, software, networks, and security. there are multiple types of support, which include desktop, network, help desk, and security support. Considering the benefits, they include minimized downtime, increased productivity, proactive maintenance, and customized solutions. Multiple tools like help desk software, remote desktop tools, monitoring software, and security tools empower IT professionals in delivering effective support.
7 tricks to utilize big data for market researchEminenture
Big data hides customers’ tendencies and habits. There are 7 tricks to utilize big data for market research. Browsing rich insight, observing customers keenly, utilizing marketability, inferring social media reviews, capturing emails, ETL and analyzing the ascertained information help in developing business intelligence.
Steps involved in Data Conversion Services - PPTEminenture
Data conversion is the process of converting data from one format to another. For it, encoded data is thoroughly examined. Afterwards, data conversion services accomplish various processes including importing, loading, scrubbing, uploading, validating and exporting data.
SEO Tips to Improve Site’s Google Ranking & Avoid PenaltyEminenture
According to SEO tips, we can improve our website’s ranking without getting penalized by Google. SEO Tips can be helpful in accessing and analyzing current ranking, doing keyword research, using SEO tools, removing unnatural links and using anchor text for your website.
How does Google Adwords Work and its BenefitsEminenture
Google AdWords helps in determining keywords and observing ads bidding. Maximum CPC and quality score fix which ad is to be displayed. CTR, relevancy, landing pages and users experience tell what’s the bidder’s quality score. Optimizing adwords account for drafting ads, A/B testing & other strategies solve the tussle of assigning bids.
Data extraction from other websites is called web scraping. There are many tools available for withdrawing data from websites. Import.io, Yahoo Query Language, HTMLUnit and many other are its popular examples. It helps in making databases, appropriate uses of web content and layout details for business purposes.
SEO and SEM are result oriented and online marketing tools. The former is utilized for pulling organic traffic while the latter is paid advertising tool. Organic traffic via the former adds credibility whereas the latter brings only commercial traffic. On and off page optimizations represent as the SEO components while PPC and CPC are of SEM’s.
8 Benefits of Outsourcing Data Entry ServicesEminenture
Data is the new oil to the modern industry. Its benefits through outsourcing data entry services are leveraging outstandingly. Focus on core verticals, higher productivity, cost-effectiveness, acquisition of best talent, nil flaws and breaching, addition of competitive edge and frequent customer support make it popular offshore.
10 Important Tips For Increasing Traffic On Your WebsiteEminenture
Everyone wants to get more traffic to their website but it is not so easy. It requires good understanding of search engine algorithms. Advertising through social media, socializing your content, visualizing your content for making it more effective, SEO, using long-tailed keywords, guest blogging and interlinking of web pages can drive a huge traffic to your website.
For online promoters, content is an important part of their work. First they need content and then many effective ways to promote their content online. They need to use various strategies like setting objective, understanding audience, putting unique ideas, sharing, sales metrics and lead generation, analyzing their requirements and tracing their locations for their successful content marketing work.
Ecommerce websites act just like a real-time show-stopper among the modern business trends. It introduces advantages to business, productivity, ability, accessibility, reach, online demos, business analysis and branding. It adds more customers to the list of existing ones and scales it to the global level.
10 challenges that market research companies faceEminenture
Market research companies face off various challenges. The most disrupting challenges are juggling with old and new market research methods, clients’ over and different expectation, surpassing deadline, puzzling in IT technologies, maintaining quality, comparison of small companies with bigger and communication problem.
Major Google Algorithm Updates From 2010 to 2015Eminenture
Dominant search engine ‘Google’ has been making updates in its services via Google Panda, Penguin, Pigeon, Knowledge Graph and Humming Bird for internet marketing experts. These updates improve processing of Google and prove handy tools for websites to go for easy solutions of web promotions.
Eminenture’s strategy of internet marketingEminenture
Eminenture Technologies has joined the regime of rendering web promotion services. Through initial review and analysis, on-page, off page and search engine optimization, content marketing, social media marketing, search engine marketing, Email marketing and analysis in reports, it contributes its effort in web promotions.
10 tips for website designing and developmentEminenture
Drafting web design roughly, creating unique logos/banners, readable fonts, social media navigators at footer, clutter-free home page, simple design of navigators and intelligent use of white space display creativity for web designing and development.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
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Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
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Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
2. Introduction to Finance Industry
The new strict regulatory realities, the demanding economic environment and the growing
needs of customers are changing the landscape of the financial sector in a dramatic way in Europe. Setting
out the real sources of competitive advantage in these kinds of easily transforming situations can be very
important.
Europe has a well-developed financial sector. Many European cities are financial centres with
the City of London being the largest. The European financial sector is helped by the introduction of the
euro as common currency. This has made it easier for European households and firms to invest in
companies and deposit money on banks in other European countries. Exchange rate fluctuations are now
non-existent in the Eurozone. The financial sector in Central and Eastern Europe is helped by economic
growth in the region, European Regional Development Fund and the commitment of Central and Eastern
European governments to achieve high standards. European banks are amongst the largest and most
profitable in the world. The assets of the financial sector in Central Europe have risen each year by an
average of 8.0% to reach around EUR 893.4 Billion.
Banks and insurance companies have huge balance sheets and those balance sheets matter
hugely. Relatively small changes in the balance sheet can have an enormous impact on earnings. Future
cash flows are very much dependent on the financial instruments on banks’ and insurance companies’
balance sheets.
In this Report we will study about the role of Financial Sector services and finance industry in
European region.
3. Europe Finance Industry
The association for financial markets in Europe Securities Industry and financial Markets
association (SIFMA), Asia securities and Industry and financial markets association (ASIFMA) and
Global financial markets associations (GFMA) advocates stable, competitive, and Sustainable
European financial markets that support economic growth and benefit society.
The global banking sector has faced a series of problems since 2008 that have
decimated the overall net profit of the sector to just 10% of its previous level. Central European banks
faced the same difficulties of falling profitability, but the nature of the process differed from country to
country. In Europe asset growth was down 0.5% due to
Concerns about Eurozone debt.
The financial industry spends more than
€120 million per year on lobbying in Brussels and
employs more than 1.700 lobbyists to influence EU
policy-making.
Since 1998 the European Union has used
a set of financial instruments (guarantees and venture
capital) to increase the volume of finance available for
Small businesses. Since then, about 360,000 small
businesses have benefited from the guarantees provided
by the European financial instruments.
The financial sector of all EU countries is in
a transitional level and the traditional banking institutions have suffered competitive pressures by a
new form of banking institutions, as well as by non banking financial companies which had important
consequences on the structure of the banking sector.
4. Europe Finance Industry Continue……
Universal banking is already a propensity in European countries with increasing rates which are required
to continue. The main attribute of the European market is the ongoing incorporation of the economical industry via
mergers and acquisitions, attendances or combined projects, between financial institutions, insurance coverage's and
other financial institutions (ECB, 1999).
The new European market appears to motivate significant economical groups with simply classified
actions. These actions are performed by specialized, semi-independent divisions or additional companies. This
technique improves the degree of monopoly with a less noticeable way. The Group regulation prohibits monopolistic
methods in the making of services. However, such methods are difficult to be identified. Consequently, this type of
technique is not straight opposite to the Group directives, even if it can lead to monopolistic situations in local level, or
even if the European financial market is not covered with a single economical company.
Some difficulties are common across the world. New technological innovation endanger to affect retail
store economical solutions business models in designed and creating marketplaces as well. In general financial, the
pressure of improved working and investment costs presage a shake-out of potential which is already reducing market
assets and, especially in European countries, reducing access to credit for non-rated companies. In insurance
worldwide, the focus must be on finding maintainable productivity and growth, and on cautious managing of both the
uncommon interest rate environment and investment marketplaces movements on the balance sheet.
Other difficulties are more local. The efficiency of economical companies is always associated to the
efficiency of the actual economical systems they serve – as some put it, economical solutions is a utilized bet on the
actual economic system. But national home is a more important aspect in a economical institution’s efficiency
nowadays than at any time during at least the last many years. This is especially true for financial institutions. Put
simply, poor organizations in good economical systems can improve nowadays than well-run organizations in having
difficulties economical systems. At a more macro level, economical companies in growing marketplaces are doing well
while many of those in the most designed economical systems battle to return the cost of their investment.
5. Europe Finance Industry Continue……
The changes in profits from pre-crisis days are striking. All geographies show effective
revenue and operating income – in some cases amazingly so. Even in European countries, banking
earnings have grown since the crisis. But ongoing credit score failures and reorientation costs in
European countries, and regulating charges and higher capital minima in both European countries
and North The united states, are reducing profits in those areas. Latin America and most of Asia
Pacific (outside Japan, Korea and Taiwan) remain high-return marketplaces for the time being
(although foreign firms can suffer in many markets), with some likely at not sustainable levels.
Returns in insurance have also languished with property and victim industry profits Sydney and North
America are significant exclusions. Still mainly motivated by the underwriting cycle and life insurers’
performance motivated by credit score, interest rate and equity marketplaces. The industry has
experienced little by way of top quality or assessment growth over the last several years.
As a result, Europe Firms are particularly divergent. Europe Firms standing on the
threshold of once in-a-generation restructuring; the challenges of decoupling from sovereign credit
risk and the transition to European Banking Union still uncertain; and with an insurance industry
potentially hampered in its global competitiveness by stringent regulation.
Loans, guarantees and equity
CIP Financial instruments: The EU provides funding for small businesses via financial institutions in
the Member States. The Financial Instruments Financial of the Competitiveness and Innovation
Programme (CIP) help SMEs raise equity and debt finance. With a budget of over one billion euro,
these instruments should help about 300 000 to 400 000 SMEs to access funding by 2013.
Global loans: The European Investment Bank and the European Investment Fund also have lending
and investment programmes that can benefit small businesses. These programmes can be accessed
via financial institutions in the Member States.
6. Bank Loan & Guarantees
Europe Finance Industry Continue……
Risk Capital Loan Finance
• Better Governance
• Capacity Building
• Cross Investments
• Microfinance
• Round Table of
Banks / SMEs
• SME Guarantees
Public Stock
Markets
Seed & Early Stage Venture Capital Funds
Entrepreneurs, Friends, Family
Formal Venture Capital Funds
Business Angels
• Seed Business
• Business Angels
• High Growth
Innovative
SME Scheme
(GIF)
Pre – Seed Phase Seed Phase Start – up Phase Emerging Growth Development
SME development stage
Valley of Death
HIGHER RISK • Policies LOWER RISK
• Financial instruments
SME Revenue
Loans, guarantees and equity Continue….
7. Depression and Polarisation
The problems of 2008 has brought Europe to a depression. There are has been separated
between a “Centre” with financial and governmental power, and a “periphery” with no governmental impact,
great community financial debt, great lack of employment and no hope for restoration. This polarisation is
obvious in Eurostat data about commercial manufacturing. Unemployment in European countries has
increased considerably due to the credit crunch and global recession after 2008 crisis. As the “Centre” has
mostly maintained its commercial base and increased its exports to the “periphery”, nations are likely to face
increasing trade instability within Western nations that in the gradual nations might be resolved either by
continuing austerity guidelines - disappointing earnings and imports -, or by restored capital inflows further
growing community and private financial debt. In both cases, Europe’s outside is going towards a manage of
failures of income, tasks, manufacturing and exports.
Moreover, the consequences of the problems is likely to be noticeable by a more polarised
commercial structure, where poor nations, areas, sectors and firms become gradual, and where also the
“Centre” may be left with lower requirement, and a reduced ability to create new technological innovation and
economic activities. With a economic downturn of overall development in Europe and economic decrease
impacting several areas of its “periphery”, change is likely to become more challenging. Western nations as a
whole would be trapped in its traditional financial velocity – with gradual markets, a heavy ecological pressure,
and growing inequality - while other advanced and growing nations may move quicker towards new
knowledge, new products and procedures, new sources of employment, reinforced by quicker requirement
characteristics. The opportunity to create in Western nations a new velocity of development based on eco-friendly
actions and greater social rights would become more challenging to engage in.
8. Demographic Trends
Demographic change on EU level: the challenge
Europe has a population of approximately 500 million people. As the figure below shows, according to
the predictions by the United Nations – which are more negative concerning the timing of population
decline than the forecasts by Eurostat1 – increasing life expectancy will not be enough to
counterbalance low fertility rates (there is a natural decrease predicted to start in 2010), and the
positive migration balance can only mitigate this process until approximately 2025. By that time, the
population of the EU may reach 520 million, from which level it will begin to decrease.
4000
3000
2000
1000
0
-1000
-2000
-3000
The composition of population change in the EU
Natural Increase Net Migration Population Change
EU 27
Source: United Nations 2008
1.According to the latest Eurostat forecast, population decline in the EU will only start in 2040. This is a modification of their previous
prediction, which put this date at 2025, like the UN.
9. Demographic Trends Continue…..
There is evidence of a turning point in behavior, as strong global markets have slightly diminished investor fear factor
over the past year and provided the sense of comfort most investors still rely on. Two-thirds of investors worldwide
say that asset growth is increasingly a priority over asset protection. In Europe 71 percent of investors still are
unwilling to increase risk, up from 68 percent a year ago. in Europe, more investors have turned to advisors over the
past year, but fewer have an ongoing relationship with a dedicated advisor. With the exception of the U.K., European
investors are least likely to have clear financial goals or a financial plan.
European investors are most affected by the economic turbulence happened in last five years hence, they are more
likely to invest in secure financial instruments. Europe including United Kingdom measures second highest in taking
minimum investment risk and ready to sacrifice returns (%). Below exhibit shows details worldwide:
10. Demographic Trends Continue…..
Investment Fund Assets by Geographical Breakdown of AUM at end 2012 (EUR
billion)
European professionally managed investment
funds totaled EUR 7.4 trillion at end 2012 (see
table). Total AUM of investment funds increased
13% in 2012, due to a turnaround in investor
sentiment in Europe, after the ECB committed
itself to do “whatever it takes” to save the euro.
The largest financial centers (the UK, France and
Germany) managed 61% of European investment
fund assets at end 2012. The relatively high
market share of the rest of Europe (32%) is largely
attributable to other countries with large fund
management, such as Switzerland and the Nordic
countries, as well as Luxembourg and Ireland,
where some investment fund assets are also
managed.
Country AUM AUM %
Change1
Market
Share
AUM/GDP
UK 1,688 11% 23% 87%
France 1,482 5% 20% 73%
Germany 1,329 18% 18% 50%
Italy 245 19% 3% 16%
Belgium 103 3% 1% 27%
Austria 84 11% 1% 27%
Netherlands 69 7% 1% 11%
Portugal 18 -4% 0.24% 11%
Turkey 14 -12% 0.19% 2%
Hungary 12 13% 0.16% 12%
Greece 6 15% 0.07% 3%
Rest of
Europe2
2,364 17% 32% 62%
Total 7,413 13% 100% 52%
1 .End 2012 AUM compared to end 2011 AUM.
2 .Including Bulgaria (EUR 247 million) and Romania (EUR 2.1 billion).
11. Demographic Trends Continue…..
Investment Fund Assets by Geographical Breakdown of AUM at end 2012
(EUR billion) Continue….
Investment funds AUM increased throughout much of Europe, with only a few exceptions. Italy led the way with
growth of 19%, followed by Germany (18%), thanks to strong growth of investment funds reserved to institutional
investors. The UK registered a growth of 11% and France saw its investment fund AUM increase by 5%.
When comparing AUM to GDP it can be seen that investment fund assets managed in the UK represented 87% of
GDP, compared to 73% in France and 50% in Germany. These high ratios reflect the importance of the asset
management industry in general in these countries as well as the ability of their asset managers in attracting
assets domiciled abroad. They also explain why the European average is relatively high (52%).
12. Trends
The Structural
Change in the
National
Banking
Markets
Trends
The Ideal
Organizational
Model
Deregulation
Public Sector
Role
Financial
Innovations
Mergers and
Acquisitions
The European
Committee
and the Cross-
Border
Extension
13. Trends Continue…..
The Structural Change in the National Banking Markets :
At nationwide stage, Financial institutions react to the new European environment with mergers, products or even
alliances, which are sucked in order to strengthen their industry position and to avoid new competitive demands from
overseas. Two are the main propensities that exist together. The first represents mergers and products that create
powerful economical groups capable of competitive at a nationwide stage. The second concentrates on building up the
role of smaller, modern and versatile banks with specialized production and a variety of innovatory products and
services, and on internally connected their network with significant economical Units. The rearrangement of the
Western economic climate at nationwide stage includes a rapid reduction of the variety of separate banking
organizations and the mustering of industry control in a minimal variety of organizations. The degree of centralization in
EU as a total is really unimportant. Difference seems to control the behavior of credit organizations due to the
denormalisation that removed the restriction among the different types of financial institutions.
Mergers and Acquisitions :
The earnings that may occur from mergers and acquisitions can be remarkable. Proportionate, however, is the risk that
may result to the decrease of shareholders’ value. The significance of the shareholders’ value provides consistently
increasing significance, to be able to spread prosperity and capital to investors. A successful incorporation needs
precise ideal planning, after real key value motorists have been examined to make sure best quality. Major products
make sure financial systems of range and an opportunity to get into other marketplaces. Additionally, it reimburses the
negative results of improved competitors within an atmosphere of low interest-rates.
14. Trends Continue…..
The Ideal Organizational Model :
The appropriate organizational model is targeted on the development of a financial group with a
number of subsidiary companies that offer all the financial solutions with efficiency and versatility,
working almost autonomously under the control of the spend company, which is usually a bank, while
its network comprises the basic way for the total marketing of the team. This efficient freedom
decreases the prospect of interests’ issue and helps the guidance of banking organizations by
supervisory regulators. The new Western industry appears to motivate significant economical
categories with simply classified actions. These actions are performed by specialized, semi-independent
divisions or additional organizations. This technique improves the degree of monopoly
with a less noticeable way. The Group regulation prohibits monopolistic methods in the making of
solutions. However, such methods are difficult to be identified. Consequently, this type of technique is
not straight opposite to the Group directives, even if it can lead to monopolistic situations in local level,
or even if the Western economical industry is not covered with a single economical company.
The Role of the Public Sector :
The public sector facilitates and impacts the improvements that take place in the financial system.
The government authorities of all EU nations implemented important changes in their regulation,
seeking at the methodical decrease of the government interventionism, in order to accomplish the re-composition
of the financial program. The adverse impact on productivity of financial institutions, which
is due to the administration of competitors and to the trend of arbitration was counterbalanced by
beneficial financial circumstances designed by the decrease of interest-rates, which improved their
financial commitment earnings, and their financial commitment financial income. The release of a
common currency improved and multiplied the existing propensities. The inversion of competitors
circumstances motivates the relatively tremendous dimension but also the variety of the actions so
that the exploitation of financial systems of range and variety to be obtained, and also the synergies
that occur from the cross-selling and the multidimensional customer service.
15. Trends Continue…..
The European Committee and the Cross-Border Extension :
The regulation of the European Union as well as the organization of the common currency have designed new
marketplaces and offered new possibilities for cross-border actions. According to the European Committee cross-border
mergers and acquisitions will regularly become more eye-catching. Most cross-border dealings do not include
an important change of possession or control .Obviously this technique does not provide banking organizations with
comprehensive systems of additional companies. Cross-border mergers and acquisitions do not appear to have
acquired ideal significance. A number of aspects, such as management variations, interaction complications,
deficiency of understanding of local market, legal challenges etc, make limitations in development via mergers in
European level apart from the fact that this plan was shown appropriate in nationwide stage.
Deregulation :
The unification of the European financial market due to the appearance of Economic and Monetary Union (EMU) has
modified the financial regulation in the taking part nations. After the abolition of the controlling limitations, credit
organizations such as financial institutions, mutual funds, insurance providers etc., have moved from their
conventional part and via mergers, acquisitions, consolidations, combined projects or alliances, have gradually
performed a bigger part in their industry. Institutional and technical improvements have restricted the access
limitations in the financial industry. The development of institutional traders assisted their access to the public benefits
and increased the part of capital marketplaces.
16. Trends Continue…..
Financial Innovations :
Technology has changed the basic economic concepts of banking, has assisted the adjustment of
extensive details, has enhanced control and risk management and has permitted quicker performance
of dealings and development of eye-catching financial offers. Furthermore it has permitted a more
efficient supply of the existing products and services; it has increased the economies of scale in
banking processes. Electronic banking and customer services, using modern electronic channels,
such as mobile telephone networks, television and wireless appliances, constitute a new way of
transaction with the bank. This is a new reality, which is called remote banking; it has enhanced the
capabilities and has affected all banking procedures. These days, financial institutions contest with
each other in a more clear market where the contemporary economical client, who has easier access
to details, has the ability to compare different items according to quality and price.
17. Growth
Latest Reforms and Development for enhancing Financial sectors
Europe has also been working to improve the stability and efficiency of the Single Market in financial services. This
is essential to ensure the financial sector supports the real economy. Key principles include the need for the
financial system to be properly supervised, more stable, more responsible, more consumer-friendly and growth-enhancing.
Three new European Supervisory Authorities and the European Systemic Risk Board were established
in 2011 to improve cross-border cooperation, consistent enforcement of rules and systemic oversight. New rules will
also establish a single rule book for all financial firms and markets to apply appropriate regulatory standards and
support a level playing field across the Single Market.
Feb 2013 - Strengthened regime on anti-money laundering
Apr 2013 - Non-financial reporting for companies
May 2013 - Access to basic bank account / transparency of fees / switching of bank accounts
June 2013 - Creation of European long-term investment funds
July 2013 - Revised rules for innovative payment services (cards, internet & mobile payments)
Sep 2013 - Regulation of Financial Benchmarks (such as LIBOR & EURIBOR)
Mar 2014 - Long-term financing of the European economy / Revised rules for occupational pension funds
(“IORP”)
Apr 2014 - Revision of the Shareholder Rights Directive
18. Services in Finance Industry
Financial services plays vital role in shaping finance industry outlook in world’s economy. The Financial
Services industry is more competitive than ever. Comprehensive financial services and professional
consulting are a sharp focus for European finance industry. Deft in financial services and long
experience in customer service provides edge to Europe. Broadly we can classify these services into
three major service sector i.e. Banking, Insurance & Asset Management.
Asset
Management
Insurance
Banking
19. Asset Management
The term Asset management is most commonly used in the financial world to explain people and companies that
manage investment strategies on behalf of others. Asset management is a methodical process of implementing,
working, keeping, improving, and losing resources cost-effectively.
Asset management actions include assigning resources and selecting investment strategies, using a variety of
financial commitment opportunities in authorized and non-registered funds; improving profits with types or leverage;
and creating personalized financial commitment solutions for larger clients, mainly through so-called separate
accounts.
Total assets under management (AUM) in Europe increased 11% in 2012 and close to 9% in 2013, to reach an
estimated EUR 16.8 trillion at end 2013. This growth was driven by net flows and market movements, on the back of
improved financial market conditions and renewed investor confidence. This brought the ratio of AUM to aggregate
European GDP to 115% of GDP at end 2013.
European AUM (EUR trillion) and AUM/GDP (percent)
13.6
10.9
12.8
14 13.9
15.4
16.8
102 81 81 104 99 108 115
18
16
14
12
10
8
6
4
2
0
140
120
100
80
60
40
20
0
2007 2008 2009 2010 2011 2012 2013
European AUM (in percent) European AUM (Euro trillion)
20. Asset Management Continue…..
European asset managers held 23% of the securities other than shares issued by euro area residents
at the end of 2012, and 31% of the share and other equity issued by euro area residents. The order of
magnitude of this estimation confirms the essential economic function played by asset managers in
Europe in providing an essential link between investors seeking appropriate savings vehicles and
borrowers who need funds to finance their activities and developments. By performing this function
asset managers make a significant contribution to the overall development of the real economy.
Europe ranks as the second largest market in the global asset management industry –managing 33%
of the EUR 47 trillion global asset management industry at end 2012. The European asset
management industry has traditionally held a share of approximately one-third of the global industry.
Central Role of Asset Management in Investing
Asset managers offer a key service to their customers
desiring to increase the return on their prosperity. The
flow chart reveals the transmitting procedure by which
resources circulation from customers to the market.
Benefits are resources which houses do not eat from
their earnings. For institutional customers such as
insurance providers and retirement benefits resources,
this contains the repeated efforts these organizations get
from their members. These savings or earnings sources
are added to family prosperity or the supplies of
institutional traders.
By combining savings from a large group of traders, asset
managers offer a number of benefits to their customers.
Saving
Wealth
Asset
Management
Risk - Adjusted
Returns
21. Asset Management Continue…..
Flow of Fund in Asset Management Industry
The primary features of asset management
companies in Europe is to channel funds
from those that have stored to those that
have a lack of funds. Those who have
stored and are lending funds, the lender-savers,
are on the left, and those who must
lend funds to finance their spending, the
borrower-spenders, are on the right. Debtors
can lend funds directly from creditors in
financial markets by promoting financial
instruments, such as certificates of deposit,
commercial paper, corporate bonds,
government securities and stocks. This path
is often known as direct finance, in contrast
to the second path, which includes a
financial broker that appears between the
lender-savers and the borrower-spenders.
The real difference between this path and
that of direct finance is that the lender-savers
do not know who the greatest loan
provider of their funds is, whereas in the
direct finance path, the lender-saver knows
to which client their resources are being
routed to.
Banks
Insurance companies & Pension funds
Asset
Management
Companies
Financial
Markets
Lenders - Savers
• Business Firms
• Governments
• Households
• Foreigners
Borrower – Spenders
• Business Firms
• Governments
• Households
• Foreigners
Investment Banks & Brokerage Firms
22. Asset Management Continue…..
Flow of Fund in Asset Management Industry continue…..
The major financial intermediaries fall into three wide categories: banks and other deposit-taking
institutions, life insurance companies and pension funds, and asset management companies. These
three groups offer specialist services in the economy. Typically, banks are financial intermediaries
that accept deposits from individuals and institutions and make loans.Insurance companies and
pension funds take in savings from households and company employees, and invest them in money
market and capital market instruments and other assets. Asset management companies provide an
efficient way of pooling funds for investment purposes.
Asset management organizations offer their agent function not only to houses, business companies
and government authorities, but also to the other groups of financial intermediaries, in particular
pension funds and insurance policy agencies. For this reason, amongst others, they have a separate
position. As organizations making investment decisions choices for investors who have chosen to have
their assets professionally managed, Asset management organizations are the most important type of
buy-side institutions. The buy-side is the opposite of sell-side organizations, such as investment banks
which are specialized in helping firms issue securities and acquiring other companies through mergers
and acquisitions, and brokerage firms, which conduct transactions on financial markets for clients or
for their own account.
23. Asset Management Continue…..
Asset managers are creating a the real economy, assisting organizations, financial institutions and government
divisions to meet their short-term financing needs and long-term investment specifications. They achieve this by
offering equity capital in both primary (IPOs and private placements) and secondary markets, and secondary
markets, as well as credit capital – directly via corporate bonds or indirectly via money markets. By contributing to
very high phases of activity and turnover in the secondary markets, they also promote the determination of the price
of the securities showing all appropriate details. If asset managers were not contributing to the supply of funds in
financial markets, companies would lend in less favorable conditions. This would lead to higher cost of capital, lower
levels of investment and poorer long term growth performance.
Last but not least, voting at investor conferences is a way for asset managers to play a role in enhancing business
governance of issuers, and in assisting to build investor value while safeguarding the managers’ portfolio investment.
Indeed, by voting, asset managers pay attention to the quality and suitability of the details provided by providers and,
eventually, may observe in the medium-term their actions. So, voting has become a part of the liability taken on by
asset managers to signify specifically the best interests of savers and investors
24. Asset Management Continue…..
AUM in Investment Funds and Discretionary Mandates
Discretionary mandate assets at end 2013 are estimated at EUR 8.7 trillion or 52% of AUM, whereas investment
funds accounted for the remaining EUR 8.1 trillion or 48%. Typically, asset managers receive mandates from
institutional clients and high-net-worth individuals, whereas investment funds serve both retail and institutional
clients’ investment needs.
48% 52%
EUR
7,415 bn
Discretionary Mandates Investment Funds
6987
5396
6289
6993
6587
7415
6642
5521
6466 7042 7275 8021
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2007 2008 2009 2010 2011 2012
Investment Funds
Discretionary Mandates
Discretionary Mandates Vs
Investment
Funds (end 2012)
Evolution of Investment Funds and
Discretionary Mandates AUM (EUR billion)
EUR
8,021 bn
25. Insurance
Insurance is the equitable transfer of the risk of a loss, from one enterprise to another in return for payment. It is a form of risk
management primarily used to hedge against the risk of a contingent, uncertain loss.
Insurance enables households and organizations to live and perform in a stable environment. It not only helps economic
transactions by providing risk return and indemnification, it can also enhance financial stability, mobilize benefits, enable risks
to be handled more effectively, motivate reduction minimization and enhance efficient capital allowance.
With a share of 33% of the global market, the European insurance industry is the largest in the world, followed by North
America (30%) and Asia (29%). Insurers’ investments in the European economy continued to grow during 2013. Concerns
remain, however, about how the Solvency II directive will affect their ability to continue as Europe’s largest long-term stable
investors, according to Insurance Europe. As of 31 December 2013, the European insurance industry had over €8.5 trillion of
assets under management, representing a 3.2% growth at constant exchange rates compared with 2012
Life Insurance
The European life insurance industry continued to operate in a difficult macroeconomic environment in 2012. A significant
proportion of Europe’s customers found it increasingly challenging to commit part of their income to long-term investment
strategies, with short-term main concerns such as day-to-day expenses or repaying debt generally taking priority. Consumers also
seemed to have a greater preference for liquidity in their products, partly due to a lack of confidence in financial markets. Demand
for life insurance was further affected in a number of countries by factors such as a reduction in the tax
incentives for life insurance investment strategies and competition with other (more liquid) benefits items. Despite this challenging
environment, European insurance providers ongoing to play their important social role of providing long-term financial stability and
security for policyholders’ benefits.
Life insurance providers engaged in premium and with-profit advantages items with described advantages, which invest the huge
of their funds in fixed-income equipment, find it progressively difficult in such an environment to offer eye-catching assured
financial commitment profits to customers. These items therefore become less attractive when interest levels are low. The likely
rebalancing of risk-sharing in new agreements between customers and insurance providers, with customers required to take more
of the threat, also makes the agreements less attractive
26. Insurance Continue…..
Non-Life Insurance
The non-life insurance policy industry, with its three main business lines — motor, health and property
— displays a significant relationship with the economic circumstances and durations in each
individual market. Higher levels of general economic activity typically result in higher levels of
demand for protection products. Need for general insurance policy is also price-sensitive because of
the limited degree of product differentiation inherent in the non-life industry.
Non-life insurance policy showed 41% of total written premiums in European countries in 2012.
Premiums continued to increase in comparison to past years, despite the challenging economic
environment. Non life business benefits from the fact that, even during periods of economic
uncertainty, people still buy insurance to protect the things that matter to them, such as their
health,their houses or their vehicles. This is also one of the key reasons why insurance providers play
such a stabilizing part in the economic system.
For non-life business, motor (except third party liability), credit and certainty deliver seem to be the
most insecure business lines, with premiums decreasing in more than half of the nations surveyed.
In the latter, the decline is more than 5% in almost 50% of the nations. Fire and damage and common
responsibility seem much more effective, with growth in more than 70% of the nations. Accident and
health is also growing in a large number of countries as personal accident is often sold in addition to
property insurance.
27. Insurance Continue…..
Benefits and claims paid
Total benefits and claims paid by insurers to their customers amounted to €948bn in 2012, a 1.4% increase year-on-
year. This was primarily due to the increase in life insurance benefits paid in Europe: up 3% in 2012, to €647bn,
following a more significant increase of 11% in 2011. The UK, France, Germany, and Italy continue to account for
three quarters of European life benefits paid. Total benefits and claims paid in non-life insurance remained largely
stable in 2012, amounting to €302bn, with higher property claims balanced out by lower motor claims. A look back
at the last few years shows that the total claims and benefits paid have constantly increased since 2010 after a
significant drop in 2009. This is a reversion to the trend of constant increase that prevailed before the crisis.
Total European benefits and claims paid — 2003–2012 (€bn)
600 610 660
780
850 850
800
830
900 920
380 390 410 500 580 580 500 520 590 610
1800
1600
1400
1200
1000
800
600
400
200
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Non-Life Insurance
Life Insurance
29. Banking
Retail banks offer a range of services to individual clients and businesses, rather than to huge companies and other
financial institutions. The services can include current accounts, investment advice and broking, and loans and
mortgages.. Retail banks perform two crucial functions for customers: firstly, they enable clients to bank their cash
securely, access it easily, and conduct transactions; and secondly, they provide access more cash to fund huge
purchases, such as buying a home. In return for holding customers’ funds, which they can then invest, financial
institutions pay clients interest.
The state of the financial system in European countries is not a satisfied one. The international economical trouble
global financial crisis of 2007- 2009 has turned into the European sovereign debt crises of 2010-2012. While a strong
financial sector can support financial growth, a poor industry increases an financial problems. The Western economic
industry had a strong year, 2012. Long-term pattern continued its course: total number of Credit Institutions (CI) in the
EU decreased by 199, of which the biggest change was recorded in Italy (-40 CI), followed by Germany (-29), Spain,
France and the Netherlands (-21 CI each). These changes reflect banks’ effort to consolidate. The only countries where
the change was positive, are: Lithuania (2), Malta (2) and Sweden (1).
European banks have put significant effort into entering the life insurance business during the past few decades and
they have had significant success. The BAI/BCG study estimates that leading European bancassurers typically
generate a return on revenue and on capital of 20 % to 30 % and derive one-quarter to one-third of their retail profits
from insurance policy and investment revenue . Moreover, European banks have penetrated the life insurance business
to a significant degree: their share of the markets averages more than 20 %, and exceeds 50 % in France. Finally,
European banks’ revenue of life and pension insurance continue to grow at more than 20 % per year, substantially
more rapidly than overall revenue in their local markets.
30. Banking Continue…..
EUROPEAN RETAIL BANKING REVENUES €BN, 2011 – 2012
BREAKDOWN AT
COUNTRY LEVEL
10%
8%
15%
14%
15%
14%
22%
22%
18%
18%
2%
2%
5%
6%
10%
13%
4% 4%
2011 2012
Spain
Italy
France
Germany
UK
Sweden
Turkey
Russia
Switzerlan
d
BREAKDOWN AT
SEGMENT LEVEL
377
81% 80%
19%
20%
2011 2012
Individuals
SMEs
365
377
365
BREAKDOWN AT
PRODUCT LEVEL
365
377
15% 16%
15% 17%
7% 7%
3%
14%
19%
8%
4%
6%
5%
16%
18%
5%
3%
5%
4% 4%
5% 3%
2011 2012
Mortgages
Personal loans
Credit cards
Overdrafts
Small Business
assets
Current accounts
Savings
Small Business
liablities
Bancassurance
Retail
Investments
ALM Revenues
The above represents the single largest segment of the European banking market as a whole – over
50% of overall aggregate banking revenues across the countries analysed.
31. The performance of 100 key European banks representing more than 90% of
the EU 27 banking industry.
Banking revenues from core activities [2013; EUR Bn]
Specialized Financial Services
Insurance and Investor Services
Corporate and Investment Banking
700
5%
13%
23%
59%
Germany France
UK,
Ireland
Iberia ROW2
Source: Annual reports, Financial presentations, Roland Berger analysis
CEE1BeNeLux Nordics
Switzerland,
Austria
Regions of activity
1. Central&
Eastern
Europe.
2. Rest of World
Retail & Business Banking
Italy
Banking Continue…..
32. Banking Continue…...
As a result of bank closure, some 5.5 thousand branches were closed. The countries concerned are
mainly Germany, Spain and Italy, where 1.6 thousand, 2 thousand and 1 thousand branches closed,
respectively. In track with that, the number of employees employed in the banking industry dropped by
over 51 thousand or 1.7%, not least on the account of Spain (over 11.7 thousand), Italy (over 6.8
thousand), France (5.4 thousand), Germany (4.7 thousand), Poland (4.3 thousand) and Romania (4
thousand). By comparison, Sweden saw the biggest rise secured employees depend, by 2.4 thousand.
The turbulence also had an impact on banks’ financial figures in 2012. Assets shrank by 1.9% or EUR
863 billion. Total stock of loans in the EU fell by EUR 206 billion (0.8% of total stock of loans), while
stock of deposits increased by EUR 177 billion. These figures are a tangible manifestation of the
impact of financial regulation, which eventually leads to deleveraging and restructuring of the banking
sector.
Total assets, loans, deposits, number of credit institutions and
Deposits (EUR…
Deposits (EUR trln)'12
Loans (EUR trln)'11
Loans (EURtrln)'12
Assets (EUR…
0 10 20 30 40 50
Assets (EUR trln)'12
Staff (mio)'11
Staff (mio)'12
Number of CI(thsd)'11
Number of CI(thsd)'12
Euro area
Non euro area EU
EFTA
number of staff employed in 2011 and 2012
33. Banking Continue…...
Total stock of deposits in the EU increased by 0.5% in 2012, however, development is only because of the non-euro
place EU nations (by EUR 232 billion or 4.7% for the region), while euro area banks’ inventory deposits declined by
EUR 115 billion, or 0.7%.
Analysis of the EU banks’ significant counter
parties reveals that the greatest decline in
banks’ deposit base took place within the inter-bank
deposits: they decreased by EUR 283
billion, or 2.2%. The only other counterparty
whose deposit base shrank was central
governments: a fall of EUR 16.5 billion, or 7.2%
in 2012.
On stability, EU deposits from non-monetary
financial organizations grew by a steady 2.2%,
of which deposits from corporates increased by
a healthy 5.1% (or by EUR 108 billion).
Total deposits
15.3 16.8 16.5 16.5
17.3 17.2
4.7 4.3 4.7 4.8 5 5.2
1.2 1.1 1.1 1.3 1.9 2.1
30
25
20
15
10
5
0
2007 2008 2009 2010 2011 2012
Euro area Non euro area EU EFTA
34. Challenges and opportunities
Challenges
European financial institutions will face a significant investment crisis in 2014 through the
combined impact of Basel III capital ratio requirements, Leverage Ratio requirements, the European
Central Bank Comprehensive Assessment, and possible further national regulatory discretions. As
economies rebuild, banks should switch from asset contraction to expanding their capital
base. Although the environment for capital raising is becoming more favourable, we estimate €180
billion is required, which is a substantial amount for the market to absorb in the short term, so the
competition for new capital will be fierce.
Cash generation for stronger European banks will stay strong, particularly with weak loan
growth. This means stronger financial organizations will start to look for growth opportunities again.
For some this will lead to asset sales or dealings between recuperating and retrieved banking
organizations. Acquisitions are likely to stay within areas e.g. European countries and Central and
eastern Europe, as the regulatory environment is driving regionalised strategies.
Non-bank or specialist lenders will continue to rise, but still have a long way to go before they
challenge the mainstream lenders. At some point, a number will sell out to their larger bank rivals,
providing them with an expanded product offering (e.g. a capital light, non-insured peer to peer
product).
European Regulation of OTC Derivatives and Short Selling On 15 September 2010 the
European Commission adopted two proposals — one for a regulation to bring greater transparency
to the OTC derivatives markets and a second for a regulation on short selling and certain aspects of
Credit Default Swaps (CDSs). Negotiations on both proposals are under way in Council and
Parliament. Once adopted, the regulations would applied from year-end 2012.
35. Challenges and opportunities Continue….
Opportunities
As the Eurozone and UK recover from the recent economic turmoil, successful insurers will be those that
simplify their organizations and business models to create more efficient operations that can seize emerging
growth opportunities.
Insurers must keep pace with evolving regulations, which are becoming more stringent, affecting everything
from capital requirements, to commission rates and customer care.
While the region’s aging population and the personal and commercial non-life markets present significant
opportunities to increase sales, insurers must maintain focus on profitability.
As the low interest rate environment continues, insurers must retool their investment strategies to increase
investment yields and be adequately compensated for increased risks added to the portfolio.
As the economy improves, insurers must develop a stronger digital presence, investing in technologies that
address the enhanced service expectations of consumers purchasing insurance on the internet.
The development of a comprehensive, cross-functional enterprise data analytics strategy will improve customer
targeting, product design, pricing, agency management, underwriting, claims and reporting
36. Recommendations
There are several things that European finance sector need to do for their
success:
Get accustomed to the new, reregulated world in which they are operating;
Get a real grip on risk management;
Use their capital more effectively;
Innovate across multiple dimensions (easily said but very difficult to do);
Keep finding ways of enhancing the customer experience.
Developing Europe’s securities markets and non-traditional sources of finance;
Encouraging and enabling a greater, more direct, role for long-term investors;
Encouraging the investment banking ‘sell-side’ to do more to stimulate and underwrite long-term
investment;
Enabling market-based credit intermediation to play a more prominent and stable role in
financing; and
Reviving and developing securitisation.