Markets: Frankfurt plummets in the ranking of financial centers – these are the reasons
Germany's financial hub has dropped out of the top 20 in the most important global ranking. One reason is bureaucracy. Experts are showing how the location can return to the top.
Frankfurt, Germany's financial hub, has suffered a significant decline in its ranking among global financial centers, dropping out of the top 20 and now sitting at 29th place. This downturn is according to the Global Financial Center Index, a highly regarded ranking of international financial hubs published twice yearly. The city has lost 14 places overall, moving down to ninth position in Western Europe, behind London, Zurich, Geneva, Luxembourg, Lugano, Paris, Copenhagen, and Amsterdam.
In the European Union, Frankfurt holds the fifth spot. The decline is particularly attributed to the rise of Asian cities. This loss in significance is not just detrimental to Frankfurt; it also poses a challenge to Germany's broader economic infrastructure. Prof. Hans-Peter Burghof, a banking and finance services professor at the University of Hohenheim, emphasizes that a financial center is integral to economic infrastructure.
When it loses relevance, the accessibility to substantial capital for German businesses becomes more difficult, especially for smaller firms that may struggle to transition to international markets.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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