Under the motto Reality Check – How to Foster Growth in the New Regulatory Environment, central bank governors, regulators, representatives of supervisory authorities, financial policy makers, academics and practitioners will meet for the fifth time in the Financial Centre Frankfurt to discuss questions of financial market regulation and their impact at the Frankfurt Finance Summit. Read more
At the Frankfurt Finance Summit, Michel Barnier, European Commissioner for Internal Market and Services, highlighted a fundamental benefit of the banking union in his opening address. “The banking union means that taxpayers are no longer in the front row when banks have to be rescued.” Danièle Nouy, President of the Supervisory Council at the European Central Bank, points to existing challenges on the path to greater financial stability: “the short-term challenge is to strengthen confidence in the banks’ balance sheets.” Read more
The third annual Frankfurt Finance Summit will take place March, 2013 at the Deutsche Bundesbank (German Federal Bank). Attending will be some 170 central bank governors, banking and securities regulators, and representatives of the finance industry from 19 countries to discuss the future of the euro and how regulation and crisis management affect the world’s financial economy. The Summit is in English and will be broadcast live over the Internet at: www.frankfurt-main-finance.com/stream Read more
On the first day of the football conference Kick-off in the Financial Centre, Dr. Lutz Raettig, Chairman of the Executive Committee of Frankfurt Main Finance, emphasised the close link between Eintracht Frankfurt and the financial centre. “Financial institutions dominate Frankfurt. Similarly, Eintracht, a club rich in tradition, is a giant in Frankfurt – Frankfurt is the leading financial centre in Germany, the Eintracht is the leading football club in the financial centre.” Read more
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
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
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.
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.
In the most recent Executive Board meeting, Frankfurt Main Finance e.V. accepted new sustaining members. Goldman Sachs, the law firm Taylor Wessing LLP and the FinTech consulting firm, Techfluence Consult UG have pledged their support to the financial centre, Frankfurt. WM Group joined already in April of this year.