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.

“The financial crisis has triggered a profound transformation in the global banking landscape. Rooted in the U.S. mortgage market, the crisis spread across the global financial and real economy. The adjustment process is likely to last for several years. Confidence in the financial markets must be restored sustainably,” said Dr. Gertrud R. Traud, Chief Economist and Head of Research at Helaba, at the presentation of the study in Frankfurt. “The banking world is changing: business models and formerly booming market segments – structured securities or securitization – are on trial. Both wholesale and retail sides are returning to their core competencies.”

Increasing concentration on Frankfurt

The study rates the chances for a medium-term improvement the Financial Centre as comparably good, although the transformation triggered by the crisis has definitely left its mark. “Financial centres worldwide are concentrating on reduction of overcapacities and refocusing on their domestic markets,” said Traud. However, the trends in German banking employment, which is increasingly concentrated in the Main Metropolis, are accentuated even more by the crisis. As Frankfurt grows in its role as the sole German financial centre, its international competitiveness will ultimately be positively affected.

The Helaba Financial Centre Study 2009 can be found here.