Frankfurt Main Finance Cup

Frankfurt Main Finance Cup: Eintracht Frankfurt defeats F.C. Tokyo 3:2

Frankfurt am Main: In front of some 50,000 spectators, Eintracht Frankfurt defeated F.C. Tokyo with a score of 3:2 to with the “Frankfurt Main Finance Cup”. The Cup was played as the Eintracht-season opener for the second time since 2014. “Football brings together people and markets,” says Dr. Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance. “After all, Eintracht Frankfurt has two players from the Japanese National Team, Makoto Hasebe and Takashi Inui, on its squad. The game highlights the ties between football and financial centres, Frankfurt and Tokyo, as well as Germany and Japan.” Read more

Financial Centre Study: every crisis brings opportunities

Helaba presented its third major financial centre study in April 2009. This year’s study examines the effects of the global financial crisis on the German banking capital and finds that the Financial Centre Frankfurt has been less affected by the crisis than London, thus has the chance to improve its position in the financial world. Read more

Financial Centre Focus: the largest banks in Frankfurt

In their new study, Helaba ranks the Financial Centre Frankfurt’s largest banks by employee strength for the first time. This new, survey-based ranking comprises the twelve largest banks and three major financial institutions. “Together, these players together make up more than three quarters of local bank employment – a broad basis for our employment forecast,” explains Dr. Gertrud R. Traud, chief economist at Helaba.

The consolidation-related staff cuts in the Frankfurt are expected to remain manageable. “A major reason for this development is the increasing need in the financial services sector as a result of new, more stringent regulatory requirements,” said Traud. First off, commercial banks require staff for the implementation of the new regulatory requirements. Secondly, by the end of next year, approximately 1,000 people are likely needed to build up the Single Supervisory Mechanism under the umbrella of the European Central Bank. “Through the acquisition of European bank supervision in Frankfurt, the financial centre will again be reaffirmed as the centre of European monetary and banking policy,” says Traud.

By the end of 2015, Helaba experts expect a total of about 61,300 bank employees in the Main Metropolis. Based on the latest available information in accordance with the new zoning for the Frankfurt area labour bureau (Q1 2013: 62,250), prediction means about 1,000 fewer jobs, a 1.5 percent reduction. The crisis induced personnel adjustments since the end of 2008 amount to a loss of 3,500 jobs. Considering this, the decline in employment in Frankfurt is lower compared to other financial centres.

Download the study

Financial Centre Delivers High Quality Forecasts

Headquartered in the Financial Centre Frankfurt, the European Central Bank (ECB) is the only central bank in the world to regularly create accurate growth forecasts for their own economic area like the International Monetary Fund (IMF) does for economic areas, according to Bloomberg Businessweek. Read more

ICFRMx

ICFx Frankfurt Rhine-Main Indices

The ICFx Frankfurt-Rhine-Main indices reflect the listed economic strength of Frankfurt Rhine-Main region and illustrate the region’s diverse economic structure.

One can easily see the economy is strong in Germany’s third-largest metropolitan area: to start, in July 2012, the indices significantly outperformed the DAX, M-DAX, S-DAX and Tec-DAX price index over the past five years, beating all other German indices. A clear signal for companies considering settling in the region.

In total there are three indices

  • ICFx Frankfurt-Rhein-Main with 45 companies
  • ICFx Frankfurt-Rhein-Main with 30 companies
  • ICFx Frankfurt with 17 companies

The indices are calculated and published by the ICF Bank AG. They were designed by ICF and Frankfurt Economic Development GmbH in cooperation with FrankfurtRheinMain GmbH.

Admissions Criteria for the Frankfurt-Rhine-Main Index are:

  • A large number of employees must be employed in the Rhine-Main area.
  • The headquarters or a larger office must be located in the Rhine-Main area.
  • The company must be listed on the Frankfurt Stock Exchange.

To the indices: http://icf-markets.de/

Korean FinTechs Visit the Financial Centre Frankfurt

To help mark the 25th anniversary of Germany’s reunification, a 14-member South Korean delegation headed by Congressman Kim Jeong Hoon (pictured with Angela Merkel during the reception) visited the financial centre, Frankfurt. The delegation included leading FinTech companies like YAP Global, Finotek, Yello Finance Group and Datastreams corp. Frankfurt Main Finance organised an exchange at the offices of Frankfurt Economic Development between Frankfurt’s universities, Germany’s leading FinTech companies and the Maininkubator.

South Korea is the world leader in mobile payment among industrialized countries with a usage rate of 40%. With more than 60 million mobile payment users, Koreans are among the world’s fastest adaptors of FinTech.

Dr. Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance was impressed: “In this regard, Germany needs to catch up and we want to this to happen. On the other hand, in Frankfurt we have FinTech companies, like as 360T, which are unparalleled infrastructure providers. Korea and Germany complement each other well and we therefore hope to continue to work together even more closely.”

In December 2013, the financial centres Frankfurt and Busan signed a “Memorandum of Understanding” to mutually support and strengthen one another.

Economics Minister Al-Wazir Travels with Delegation to China

The Hessian Economics Minister Tarek Al-Wazir departed Saturday for a weeklong trade mission to the People’s Republic of China. A few months after Frankfurt being named the first Renminbi first trade centre in the Eurozone, finance and economics meetings are at the centre of the trip. “The foundation has been laid, so that Frankfurt can establish itself as a central RMB trading platform in the euro area. The talks with the Chinese central bank, amongst others, will be concerned with fine tuning so that operations can get off the ground as quickly as possible. This will greatly benefit the financial centre of Frankfurt and also many SMEs in Hesse, whose business with Chinese partners will be significantly simplified, “said Al-Wazir upon his departure in Frankfurt.

“The conditions for even closer integration between Hessian and Chinese companies are good,” said Al-Wazir. China is the most important economic partner in the Asian market. The combined overall trading volume is currently over 9 billion Euros. At the same time, China is among the most active foreign investors in Hessen. “More and more Chinese technology companies, who want to invest in high-tech segment, are looking for a location in Europe. Hessen offers especially optimum conditions with its wide range of qualified professionals, high economic power and Frankfurt Airport as an international hub.” There is a great demand in China in sectors like environmental industries, energy efficiency, new materials and information and communication technologies. The Hessian economy compliments this demand with a high degree of expertise in these fields.

The delegation will stop in the capital Beijing, the financial centre of Shanghai and the Hessian partner-province of Hunan.

In Beijing, the conversations with the Chinese Ministry of Commerce (3/11) and the Ministry of Industry and Information Technology (4/11) will focus on the expansion of trade and investment.

In Shanghai (6/11) investment conditions in the Shanghai Free Trade Zone will be a focus of discussions with the local Trade Commission and Investment Authority. On the same day, the 3rd Hessen-Shanghai Business Forum will take place.

In addition to the capital Beijing and the economic hub Shanghai, the Hesse’s partner province Hunan (since 1985) is the third destination (5/11.). Economically speaking, Hunan is among the 10 strongest provinces in the PRC and since June this year is connected to Frankfurt with a direct flight. Hunan is one of the provinces with ambitious goals for improving their environmental quality and plans for resource-saving, environment-friendly development path. There project and company visits will be at the centre.

Overall, the delegation includes nearly 70 people. Their journey will last until 07/11.

Frankfurt and Istanbul Cooperate Successfully in the Finance Sector

Mayor Feldmann sees positive results on Istanbul visit: submits concrete projects to develop digital infrastructure and locations

(Pia) In a recent visit Istanbul, Mayor Peter Feldmann and his 20-member delegation were received by Ahmet Selamet, the Deputy Mayor of the 15 million person metropolis. Conversations focused on a mid-term review of 2012’s Memorandum of Understanding, on economic cooperation in the development of Istanbul as a financial centre.

Since 2012, several expert meetings and workshops have been held in Frankfurt and Istanbul, most recently at the Istanbul Finance Summit in 2014. Core themes in consultation with Frankfurt Economic Development and Frankfurt Main Finance were the development of a financial centre cluster, the spatial development of financial centres and the necessary digital infrastructure. To this end, Frank Orlowski of DE-CIX Frankfurt served as a competent representative of the Digital Hub FrankfurtRheinMain.

The City of Istanbul was especially pleased to see that Mayor Feldmann and the Frankfurt Economic Development already had two concrete project proposals: plans to develop a digital infrastructure and a settlement strategy for the growing financial centre Istanbul.

Press release on the City of Frankfurt website (German).

European Capital Markets Union Promises Sustainability

The planned Capital Markets Union will offer new financing methods to small and medium enterprises (SMEs. For small businesses in Europe, the issue of securing capital is becoming increasingly important. In the future, companies in Hesse are also expected to benefit from the European project and had the opportunity to inform themselves about these opportunities today at the Chamber of Tradecrafts in Frankfurt. The European Commissioner for Financial Stability, Financial Services and Capital Markets Union, Lord Jonathan Hill, and the Hessian Minister of Finance, Dr. Thomas Schäfer, discussed the benefits of the proposed capital market Union with about 30 representatives of Hesse’s SMEs and representatives of the banking and finance sector. The companies were also able to express their wishes for future development of the Capital Markets Union.

The workshop organised by the Hessian Ministry of Finance and Frankfurt Main Finance illustrates the close cooperation with SMEs and should promote further discourse.

Dr. Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance, underlined the role of SMEs in this process: “The voice of the business community is essential for the success of the Capital Markets Union in Hesse and throughout Europe. The companies’ access to alternative financing holds great potential for Europe,” said Raettig.

The Hessian Minister of Finance, Dr. Thomas Schäfer, pointed to the development opportunities for SMEs brought with the Capital Markets Union: “When properly implemented, the creation of a Capital Markets Union allows us to improve the financing opportunities for our companies spurring increased long-term economic and job growth. At this point, the Chambers of Tradecrafts can make a valuable contribution with their experience and expertise. In addition to expanding the range of financing options – which should not to replace but act alongside financing from banks – regulatory complexity and unnecessary regulatory requirements must to be reduced as soon as possible. In order for an effective implementation to be successful, it is vital for the politicians to understand the specific problems and needs of business owners. After all, they are the ones for whom the project is intended to serve.”

Hesse’s Minister of Finance made it clear: “The Capital Markets Union is good for the future of the Hessian SMEs. The State of Hesse is already strongly committed to the small and medium enterprises in the region. For example, the Innovationsförderung is responsible for the promotion of innovation in Hesse through support of technology-oriented research and development projects of SMEs and universities in cooperation with other partners from industry and research.”

Commissioner Hill said: “German SMEs are the backbone of the economy and are a major engine of growth. One of the goals of the Capital Markets Union is to open up businesses in Europe a greater choice of financing sources. This should help them to invest and grow. I want European start-ups and companies to find the funding they need in Europe.”

The long term goal of the EU initiative is to create a single capital market. This should result in rising levels of investment and thus growth and employment in the EU. The Capital Markets Union is a project which is being pursued in Europe with great commitment. The discussion is based on the European Commission’s Action Plan on Capital Market Union published September 30th. The plan envisions an EU-market for simple, transparent and standardised receivables securitisation. The plan also calls for a Europe-wide legal framework for covered bonds, investment by insurance companies and asset managers, venture capital and crowdfunding. The foundations for establishing the Capital Markets Union should be laid by 2019.