Frankfurt am Main financial center
The financial center Frankfurt am Main has established itself as the leading financial center in Germany due to its high concentration of companies in the financial sector and is one of the most important international financial centers worldwide . The outstanding position of Frankfurt am Main is mainly characterized by the strong banking sector , by far the largest German stock exchange , the city's international orientation and as a location for European supervisory authorities. In 2017, 75,624 people were employed by Frankfurt financial and insurance service providers.
Development of the financial center
Frankfurt am Main has been one of Germany's urban centers since the Middle Ages. The rise of the city from the royal palatinate to a trade and trade fair city was primarily due to its geographical location at the crossroads of important trade routes on the Main and near the Rhine , as well as its political importance. From the middle of the 12th century, Frankfurt became the preferred city of elections for the German kings , which was enshrined in the Golden Bull in 1356 . From 1562 the imperial coronations took place in Frankfurt . This favored trade and brought the city important privileges, including the right to mint coins from 1330 . The Frankfurt trade fair , first mentioned in a document in the 11th century, established itself as a hub for long-distance trade relations with all of Europe's major trading centers.
Due to the busy trade, many different currencies were used in Frankfurt and since there were no fixed exchange rates , fraud and usury were common . In 1585, the Frankfurt trade fair merchants agreed for the first time on exchange rates for the various currencies and on rules for their trading: the Frankfurt Stock Exchange was founded. With the expansion of trading business, the development of money and credit transactions went hand in hand. Wealthy merchants and bankers of Dutch and Walloon origins found a new home in Frankfurt after fleeing the Spanish Counter-Reformation . From the middle of the 18th century, the government bond business flourished in Frankfurt. The leading Frankfurt bankers ( Bankhaus Bethmann , Bankhaus Metzler , MA Rothschild & Sons ) issued large bonds for Austria , Prussia and other German and European countries. In the 1830s trading in bonds to finance the construction of the railway was added. In 1854 the Frankfurter Bank was founded as the private bank of the Free City of Frankfurt .
With the annexation of Frankfurt by Prussia in 1866 , the financial center lost its importance for the bond trade. After the establishment of the German Empire in 1871, the capital Berlin established itself as the most important market for stocks . At the end of the 19th century, the Berlin Aktienbanken were far superior to the Frankfurt private banks in terms of financial strength and the Berlin Stock Exchange had become Germany's new leading stock exchange. Once important private banks such as BH Goldschmidt , Erlanger & Söhne and MA Rothschild & Söhne gave up their business or relocated to Berlin.
During the global economic crisis from 1929 onwards, numerous Frankfurt banks had to be liquidated. In the time of National Socialism from 1933 onwards, private banks of Jewish origin were "Aryanized" or liquidated, including J. Dreyfus & Co. , Lazard Speyer-Ellissen and Jacob SH Stern . During the Second World War , the city was badly hit by numerous air raids from 1943 onwards . At the end of the war, Frankfurt began to rise again to become the leading German financial center, as the capital Berlin , which was divided into four sectors , had failed to compete. After the establishment of the Bizone in 1947, the Economic Council of the United Economic Area took its seat in Frankfurt. In 1948 the Allied occupying powers founded the Bank deutscher Länder here . It took over the function of the former Berlin Reichsbank as the central bank for the Federal Republic of Germany founded in 1949 and was replaced in 1957 by the Deutsche Bundesbank , also based in Frankfurt . The proximity to the central bank prompted further banks to set up their headquarters in Frankfurt: in 1957 , after the Deutsche Bank had been broken up into ten regional banks after the end of the war and then merged into three successor institutions (with locations in Hamburg , Munich and Düsseldorf ) , the Deutsche Bank was re-established and subsequently Frankfurt relocated. In the same year, the Dresdner Bank was re-established through the merger of successor institutes and moved to Frankfurt. Commerzbank was re-established in 1958, but the legal seat was relocated to Düsseldorf. With the completion of the old high-rise in 1973, the third major German bank centralized its headquarters in Frankfurt. It was not until 1991 that it moved its legal seat to Frankfurt.
The German economic miracle in the 1950s and 1960s and the rapidly growing foreign trade ties in the Federal Republic of Germany enormously accelerated Frankfurt's resurgence as an economic center. The increasing internationality of the financial center could also be seen in the number of foreign banks represented: in 1967 these were for the first time more numerous in Frankfurt than in any other German city. In 1956, the Frankfurt Stock Exchange was granted permission to trade foreign securities and was able to regain its top position in Germany. The stock exchange experienced a high phase in the 1970s, when the market for foreign DM bonds expanded rapidly and the demand for German securities increased. At the beginning of the 1990s, the competitiveness of the German financial markets was strengthened through several financial market promotion laws, which benefited the Frankfurt financial center in particular.
In 1998 the European Central Bank (ECB) was founded in Frankfurt as the common central bank of the member states of the European Economic and Monetary Union . The Committee of the European Supervisory Authorities for Insurance and Company Pensions (CEIOPS) followed in 2004 .
The importance of Frankfurt as a financial center has increased especially since the start of the sovereign debt crisis in the euro area in 2009 and the resulting closer financial policy cooperation in the euro area . In 2011, CEIOPS was upgraded to a supervisory authority ( European Supervisory Authority for Insurance and Occupational Pensions , EIOPA) and the European Committee for Systemic Risks was founded for the early detection, prevention and combating of systemic risks within the EU financial market. Furthermore, from autumn 2014, the control of systemically important large banks in the euro zone will no longer be taken over by the national supervisory authorities, but directly by the ECB. This single banking supervisory mechanism is the EU's first step towards building a European banking union .
In March 2014, representatives of the Deutsche Bundesbank and the People's Bank of China signed a letter of intent to establish a clearing bank in Frankfurt through which payment transactions in the Chinese currency Renminbi are to be processed. The renminbi is not freely tradable; the majority of global trade has so far been carried out via the Hong Kong financial center . The financial metropolis of London will be the first European trading center for the Chinese currency renminbi.
Since the UK left the EU in June 2016, there have been increasing signs that various financial institutions are planning to migrate from London to other European countries. The new Brexit transition period gives banks more time to move to Frankfurt. The basic relocation plans remain in place.
Institutions
Central banks
As the central bank of the Federal Republic of Germany , the Deutsche Bundesbank has had its headquarters in Frankfurt since 1957 . With the establishment of the European System of Central Banks and the European Central Bank (ECB), national responsibility for the monetary policy of the member states of the European Monetary Union was transferred to the community level. The ECB, responsible for the monetary policy of the 19 euro countries , has also had its headquarters in Frankfurt since 1998. Since then, the city has had the addition of the City of the Euro .
Banks
The four largest German credit institutions are based in Frankfurt: Deutsche Bank , Commerzbank , KfW Bankengruppe and DZ Bank . Deutsche Bank and Commerzbank operate globally as universal banks . With DZ Bank, the central institution of the cooperative financial sector is represented, as is DekaBank, the central asset manager of the Sparkassen-Finanzgruppe . The public credit institutions include KfW Bankengruppe, Landesbank Hessen-Thüringen (Helaba), Rentenbank and Frankfurter Sparkasse . The largest German direct bank , ING-DiBa , is also represented. Other well-known German banks are Bankhaus Metzler , Hauck & Aufhäuser , Bethmann Bank , Oddo BHF , ReiseBank , Aareal Beteiligungen AG and DVB Bank . As of June 30, 2016, 199 banks had a registered office in Frankfurt, 40 of which were domestic and 159 foreign banks. There are also 33 foreign banks that have a representative office in Frankfurt. The best-known foreign banks include Credit Suisse , UBS , Bank of America , Morgan Stanley , Merrill Lynch , JPMorgan Chase , Bank of China , Société Générale , BNP Paribas and Barclays .
The Frankfurt financial center has been strengthened in recent years through the takeover of Sal. Oppenheim ( Cologne ) and Postbank (Bonn) by Deutsche Bank, as well as the takeover of Dresdner Bank, previously managed by Allianz SE in Munich, by Commerzbank. The financial crisis from 2007 onwards hit Frankfurt less severely than Munich's financial center , for example , where BayernLB had to be supported with state aid and Hypo Real Estate was nationalized. In 2012 Helaba took over the S-Group business of the dissolved WestLB (Düsseldorf) for the Sparkassen in North Rhine-Westphalia and Brandenburg.
Stock exchange
The Frankfurt Stock Exchange (FWB) operated by Deutsche Börse AG is by far the most important stock exchange in Germany. Around 98% of trading in German shares is done on the FWB and Xetra , the electronic trading system of Deutsche Börse. With share listings valued at EUR 1.05 trillion (as of December 31, 2010), Deutsche Börse is the third largest European exchange after the London Stock Exchange (EUR 2.6 trillion) and the European branch of the American-European NYSE Euronext (2.14 trillion euros).
Financial market supervision
The Federal Financial Supervisory Authority (BaFin), based in Frankfurt and Bonn, is responsible for the supervision and control of all areas of finance in Germany.
European insurance supervision
In 2003, the European Union established a European Insurance Committee ( CEIOPS ) with its headquarters in Frankfurt, while the Banking Supervision Committee ( CEBS ) and the Securities Supervision Committee ( CESR ) were established in London and Paris. In 2011, these three committees were upgraded to regulatory authorities, since then Frankfurt has been the seat of the European Supervisory Authority for Insurance and Company Pensions (EIOPA).
European Systemic Risk Board
The European Systemic Risk Board (ESRB) is a European Union authority created in 2010 for the early detection, prevention and control of systemic risks within the EU financial market.
Accounting firms
Of the four largest auditing firms ( Big Four ), PricewaterhouseCoopers are represented with their German headquarters and KPMG with their European headquarters in Frankfurt. Deloitte has a branch in Frankfurt, Ernst & Young has set up a branch not far from the city limits in neighboring Eschborn .
Fund companies
The DWS Investments is the largest German mutual fund company and, with 288 billion euros managed fund assets of the ten largest fund providers worldwide. Other large fund providers are Allianz Global Investors, Deka Investmentfonds and Union Investment .
FinTechs
According to a study by Comdirect, the city was third among the fintech locations in Germany in 2017, behind Berlin and Munich together with Hamburg. At the end of 2017 there were 84 fintech startups in Frankfurt. Because of the high rents and the competition for qualified young professionals, Frankfurt is considered a difficult place for fintechs. Frankfurt-based fintechs include the digital insurance manager CLARK and the digital asset manager Moneyfarm .
Rating agencies
The three leading global rating agencies Standard & Poor’s , Moody’s and Fitch Ratings manage their German business from Frankfurt.
Law firms
With 97 inhabitants per lawyer, Frankfurt has the highest density of lawyers in Germany, followed by Düsseldorf with 117 and Munich with 124 (as of 2005). Almost all of the major international law firms are represented on the Main , for example Clifford Chance , Linklaters , Freshfields Bruckhaus Deringer , Baker & McKenzie , Skadden, Arps, Slate, Meagher & Flom , Latham & Watkins , Jones Day , Hogan Lovells , Shearman & Sterling , Weil , Gotshal & Manges and White & Case .
Management consultancies
In addition to the law firms, the financial market has also led to a concentration of other service providers. Numerous international and national management consultancies are now represented with a branch in Frankfurt, above all the international heavyweights in the strategy consultancy McKinsey & Company , Boston Consulting Group , Bain & Company , Booz & Company and Roland Berger Strategy Consultants . Frankfurt is often the seat of industrial and functional departments close to the financial market with national or Europe-wide areas of responsibility.
Frankfurt Main Finance
The Frankfurt Main Finance (FMF) financial center initiative was founded ten years ago and its importance is growing steadily. Since the Brexit referendum and the resulting effects on the financial sector, FMF has grown further and now has more than 50 members. FMF was founded in 2008 as a reaction to the financial crisis and at the instigation of the then Hessian Prime Minister Roland Koch and the former Lord Mayor of Frankfurt, Petra Roth. He is committed to strengthening the Frankfurt financial center and markets the location on a national and international level. Members are the state of Hesse, the cities of Frankfurt and Eschborn as well as banks, stock exchanges, brokers, consulting firms, law firms and providers of transaction services. In this network, Frankfurt Main Finance promotes strong cooperation between politics, society, science and business.
Initial and continuing education
The financial center Frankfurt am Main offers various training and further education opportunities. In addition to the bank clerk , the clerk for insurance and finance is trained and in 2003 the apprenticeship investment fund manager started in the financial metropolis of Frankfurt am Main. In addition, various further training courses were created to impart qualifications that are needed in the financial sector. These include the banking specialist , specialist advisor for financial services , specialist for financial advice , specialist for insurance and finance, certified business economist and the investment specialist created in Frankfurt am Main .
The universities in Frankfurt or in the Frankfurt catchment area are also an important part of training and further education. These include above all Goethe University, which has placed a strategic focus on financial research with the establishment of the House of Finance , and the Frankfurt School of Finance & Management . The University of Mannheim , WHU - Otto Beisheim School of Management and the EBS University of Economics and Law can also be found in the extended Frankfurt area .
Financial center rankings
International Financial Centers Development Index
International Financial Center Development Index, 2013:
| rank | city | country |
| 1 | New York City |
 United States
|
| 2 | London |
 Great Britain
|
| 3 | Hong Kong |
 Hong Kong
|
| 4th | Tokyo |
 Japan
|
| 5 | Singapore |
 Singapore
|
| 6th | Shanghai |
 People's Republic of China
|
| 7th | Paris |
 France
|
| 8th | Frankfurt am Main |
 Germany
|
| 9 | Chicago |
United States
|
| 10 | Sydney |
 Australia
|
Worldwide Centers of Commerce Index
Global Economic Centers Index, 2008:
| rank | city | country |
| 1 | London |
Great Britain
|
| 2 | New York City |
United States
|
| 3 | Tokyo |
Japan
|
| 4th | Singapore |
Singapore
|
| 5 | Chicago |
United States
|
| 6th | Hong Kong |
Hong Kong
|
| 7th | Paris |
France
|
| 8th | Frankfurt am Main |
Germany
|
| 9 | Seoul |
 South Korea
|
| 10 | Amsterdam |
 Netherlands
|
Global Financial Centers Index
Global Financial Centers Index , GFCI 26, 2019:
| rank | city | country |
| 1 | new York |
United States
|
| 2 | London |
Great Britain
|
| 3 | Hong Kong |
Hong Kong
|
| 4th | Singapore |
Singapore
|
| 5 | Shanghai |
People's Republic of China
|
| 6th | Tokyo |
Japan
|
| 7th | Beijing |
People's Republic of China
|
| 8th | Dubai |
 United Arab Emirates
|
| 9 | Shenzhen |
People's Republic of China
|
| 10 | Sydney |
Australia
|
| 11 | Toronto |
 Canada
|
| 12 | San Francisco |
United States
|
| 13 | los Angeles |
United States
|
| 14th | Zurich |
 Switzerland
|
| 15th | Frankfurt am Main |
Germany
|
additional
The multi-award-winning film Master of the Universe was made at the Frankfurt financial center , in which a former investment banker explains his personal view of banks in general and of the financial crisis from 2007 onwards .
See also
Web links
- The history of the financial center - Institute for banking historical research
- The portal to the Frankfurt financial center
- Frankfurt Stock Exchange
- European Central Bank
- German Bundesbank
- Caroline Bayley: Can Frankfurt Become Europe's New Financial Capital? , BBC Radio , March 3, 2018 (English)
Individual evidence
- ↑ Unknown: labor market. In: Statistisches Jahrbuch 2018. Bürgeramt, Statistik und Wahlen / Frankfurt am Main, October 30, 2019, accessed on October 30, 2019 .
- ↑ WORLD: China's currency: London grabs a license for renminbi trading . March 26, 2014 ( welt.de [accessed October 30, 2019]).
- ↑ Frankfurt location: Banks in London are pushing for a quick move despite the Brexit transition period. Retrieved October 30, 2019 .
- ↑ Harald Kuck: The 100 largest German credit institutions. die-bank.de, accessed on November 6, 2019 .
- ↑ Bankfurt does not crumble. October 7, 2016, accessed November 1, 2019 .
- ↑ Biggest stock exchange in the world in planning
- ↑ DWS: Company profile ( Memento of the original from September 28, 2018 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Fintech in Frankfurt - overview, figures & assessments. In: finletter. Accessed June 29, 2020 (German).
- ↑ Standard & Poor's Europe Office Locations ( Memento of the original from December 25, 2014 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Moody's Worldwide Offices
- ↑ Fitch Ratings company profile ( Memento of the original from September 28, 2011 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ Density of lawyers in Germany
- ↑ 10 years Frankfurt Main Finance. Accessed November 1, 2019 (German).
- ↑ Archived copy ( memento of the original from September 24, 2015 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ↑ Training and further education in the financial center Frankfurt am Main
- ↑ Xinhua-Dow Jones International Financial Centers Development Index 2013 (PDF; 1.5 MB) Xinhua and Dow Jones. Retrieved March 13, 2014.
- ↑ Worldwide Centers of Commerce Index 2008 (PDF; 844 kB) Mastercard. Retrieved March 11, 2013.
- ↑ Mark Yeandle, Mike Wardle: The Global Financial Centers Index 26. Retrieved November 4, 2019 .
