Financial Centre Focus: banking sector employment in Frankfurt – consolidation remains limited

  • Frankfurt’s position in competition with international financial centres strengthened
  • Crisis-induced consolidation not concluded yet
  • Slight decline in banking sector employment by end of 2016

The establishment of the European banking supervision and the creation of the first renminbi trading centre in the euro area have provided a lasting boost to Frankfurt’s position as a financial centre. “This is also reflected in employment in the banking sector”, explains Dr. Gertrud R. Traud, Helaba’s Chief Economist. “The expansion of the European Central Bank to become the principal supervisory authority for banks in Europe has, by itself, led to the creation of around 1000 new jobs in Frankfurt’s financial sector. Although the consolidation process in the industry has not been completed yet, overall we only anticipate a modest decline in employment by the end of 2016, of approximately 2 per cent, to slightly more than 60,000 bank employees”, Traud added. On the other hand, for Germany as a whole, a dwindling branch network can be expected to lead to more extensive job losses.

In comparison to other European banking centres, Frankfurt – where bank employment was only 4 per cent below its pre-crisis level – ranks in the middle of the pack. In London’s financial services industry, most recent figures even show a slight rise in staff levels than in 2008 (+1 per cent), while the financial district of Paris experienced significant personnel reductions (-7 per cent). In this regard, the German financial centre came through the crisis relatively unscathed.

With its wide variety of qualities as a location, Frankfurt remains an internationally attractive financial centre. After a slight crisis-related dip, the number of banks is growing once again. In the third quarter of 2013, 193 banks had established headquarters in Frankfurt. On the other hand, the number of representative offices of foreign banks appears to be declining, while the number of operating branches seems to be on the rise.

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