Today, the German Federal Ministry of Finance submitted their bid to host the European Banking Authority (EBA) in the Financial Centre Frankfurt. Currently located in London, EBA must find a new home as a result of the United Kingdom’s withdrawal from the European Union. Applications to host the agency were due to the European Commission on 31 July 2017. The final decision is expected in November 2017.
Frankfurt Main Finance supports the Federal Ministry of Finance’s bid to host EBA in the Financial Centre Frankfurt. “We commend the Ministry on submitting a strong application. Frankfurt is home to three of the five pillars of an integrated European financial supervisory system. To relocate EBA to Frankfurt would be the logical next step and in line with an earlier recommendation by MEPs,” explains Hubertus Väth, Managing Director of Frankfurt Main Finance. In addition to hosting the European Central Bank (ECB), European Insurance and Occupational Pensions Authority (EIOPA), and the European Systemic Risk Board (ESRB), Frankfurt is also home the Deutsche Bundesbank, the German Federal Financial Supervisory Authority (BaFin) and Federal Agency for Financial Market Stabilisation (FSMA).
The Financial Centre Frankfurt is in the pole position to win banking business from London following the results of the UK’s referendum. Several banks have announced their intentions to establish or expand operations in Frankfurt as a result of Brexit, including Silicon Valley Bank, Standard Chartered, Daiwa, Nomura, Sumitomo Mitsui Financial Group, Mizuho, Goldman Sachs, Citibank, JP Morgan and Deutsche Bank. “The banks have voted with their feet for Frankfurt, now it’s on Europe to vote for financial stability and for Frankfurt,” explains Väth. Frankfurt Main Finance expects at least 12 and possibly as many as 20 banks to announce their decision for a location in Frankfurt in 2017.
Noted for its strong economic and political stability, Frankfurt and the region offer a top infrastructure, competitively priced and plentiful modern office space, a deep talent pool and an extremely high quality of life. Financial services moving to Frankfurt will find a competent, helpful and welcoming regulator in BaFin, who will accept large portions of applications in English. The Financial Centre is already home to more than 150 foreign banks and 75,000 people employed in financial services.