According to the Deutsche Bundesbank, the financial centre of Frankfurt has a special responsibility in financing future growth and, in particular, structural change and the sustainable transformation of the economy. “A strong financial centre in Frankfurt is crucial for financing growth and securing prosperity,” said Executive Board member Sabine Mauderer at the City of Frankfurt’s New Year’s reception. From this, Mauderer deduced the need to further develop and strengthen the financial centre, and to do so together: “To achieve this, everyone needs to come together: politicians, business and the financial sector.”
Not just banks and stock exchanges
The financial centre is not just banks and stock exchanges. “It also includes investors, funds, insurers, data providers, analysts, lawyers, tax advisors, management consultants and many more,” explained Mauderer, calling on all parties involved to work more closely together. “They need to pull together and network.” The ecosystem also includes the city of Frankfurt, the state and the federal government. Mauderer called on them all to make a “clear commitment to Germany as a financial centre”. There needs to be a common understanding that the financial centre is a necessary infrastructure for the local economy – “a service provider that we need”. The public sector must set framework conditions in such a way that the financial centre can perform its tasks.
Specifically, the Bundesbank board member suggested, for example, a foreigners authority that acts quickly. This is the only way to recruit urgently needed international skilled labour. At the same time, she spoke in favour of a welcoming culture for all those who want to set up a company, work or invest in Frankfurt. This also includes a “railway station where business partners, workers and investors are happy to arrive”.
Looking towards Paris
Mauderer referred to the financial centre of Paris, where there is “close networking between all players from politics, business and the financial sector”. Specialists, companies and investors are actively recruited in Paris. As a result, the financial centre on the Seine has recently recorded significant growth. This signalled that “we can definitely learn something from Paris”, said the Bundesbanker. “A growing, competitive financial centre would also be important for Germany,” emphasised Mauderer.
She is confident that she sees many opportunities “to further develop our location this year”. Frankfurt has considerable potential as the location of many large banks and savings banks as well as Deutsche Börse AG and a number of rating and data providers. In addition, the financial centre on the Main is one of the largest trading centres for sustainable finance. The volume of sustainable bonds in Frankfurt already exceeds the €200bn mark. In the coming decades, the main focus will be on transforming emission-intensive companies in particular. “So a lot of money is needed, especially for non-green companies.” Finally, Mauderer reminded the audience of the advantage of the short distances between the players from politics, business and the financial sector in the regulatory centre of Frankfurt.
Values and responsibility
Against the backdrop of the current political discussions and the looming uncertainties in the 2024 election year, the Bundesbank board member finally referred to Frankfurt’s responsibility and the canon of values it lives by. “We must defend fundamental values such as human rights, democracy, freedom and security,” emphasised Mauderer. “Here in Frankfurt, in the heart of Europe, this is part of everyday life”, because “in Frankfurt we live cosmopolitanism, tolerance, democracy and other liberal values.”
Source: Börsen-Zeitung of 18 January 2023, Article from Detlef Fechtner (Secondary publication right)
Photos: Unsplash, ©Gaby Gerster (Photo Sabine Mauderer)