Financial services companies should cash in of the lowest
interest rates to create investments and takeovers and rethink business models,
the chief govt of German exchange operator Deutsche Boerse aforesaid on Mon.
Near zero interest rates compete a crucial role in Deutsche
Boerse's takeover of index supplier Stoxx and interchange mercantilism platform
360T last year, Carsten Kengeter aforesaid within the text of a speech to the
exchange operator's New Year's reception.
"Thanks to low interest rates, we tend to were able to
finance these acquisitions at terribly enticing terms so," Kengeter
aforesaid.
"The money services trade ought to see the low-interest
rate atmosphere as an opportunity to speculate," he said.
While takeovers should be fastidiously weighed, the low rate
atmosphere may spur moves towards new business models and a replacement company
culture, Kengeter aforesaid.
"In this fashion, we would even reach triggering a
self-accelerating growth spiral," Kengeter aforesaid, adding that Germany
required to market a additional entrepreneurial spirit and improve the finance
of firms in their growth section.
Deutsche Boerse Chairman violinist Faber, speaking at
identical event, aforesaid Europe required to strengthen
the finance of firms through the capital markets and scale back the dependence
on bank loans, which might speed recovery from crises.
"The major capital market participants, the massive
institutional investors, ar harassed to speculate even throughout the crisis
and straightaway once the crisis, whereas banks initial ought to cowl their
crisis-induced credit defaults," aforesaid Faber, a former member
accountable of plus management at Europe's biggest insurance firm, Allianz.
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