Stable financial center development
After a strong recovery in the beginning of the year, the development of the financial center Frankfurt has stabilized in the following two quarters on a slightly lower level. After an index level of 108.6 in the 2nd quarter the Financial Center Barometer now stands at 106.7 points. The development of the 3rd quarter is stable throughout all dimensions. Solely in the area of “Performance of the Financial Center” we see a slight decrease. The dimensions “Internationalization”, “Locational Conditions”, “Banking System Stability” as well as “Employment and Education” remain almost unchanged.
| Q4/2009 | Q1/2010 | Q2/2010 | Q3/2010 |
|---|
| Overall indicator | 107.9 | 112.5 | 108.6 | 106.7 |
| Dimension locational conditions (Index) | 109.3 |  |
|---|
| Real gross domestic product, seasonally adjusted (€ billion) | 565.3 |  |
| Percentage of banks with head office in Frankfurt (%) | 11.4 | |
| Percentage of bank assets allocated domestically (%) | 82.9 | |
| Satisfaction of citizens with federal government policy (%) | 18 |  |
| Effective taxation of corporations in Frankfurt (%) | 29 | |
| Share of Frankfurt in the stock exchange transactions in Germany (%) | 89.9 | |
| Share of Hesse banks in the bank deposits in Germany (%) | 17.5 | |
| Dimension education and employment (Index) | 99.7 | |
|---|
| Economics students at the universities of the Rhine-Main area | 28,459 | |
| Employees in the Frankfurt services sector | 438,500 | |
| Employees at Frankfurt credit institutions | 73,200 | |
| Dimension internationalisation (Index) | 142.5 | |
|---|
| Percentage of foreign banks in the bank assets in Germany (%) | 70.6 | |
| Percentage of foreign banks in the bank assets in Germany (%) | 11.1 | |
| Loans to foreign non-banks (€ billion) | 1,111.0 | |
| Loans to foreign non-banks (€ billion) | 716.3 | |
| Share of financial services in service exports (%) | 5.2 | |
| Dimension performance of the financial sector (Index) | 80.9 | |
|---|
| Stock exchange transactions in Frankfurt (million) | 53.0 | |
| Trading turnover in shares (€ billion) | 556.0 | |
| Loans of Hesse banks to domestic non-banks (€ billion) | 343.6 | |
| Total assets of the largest Frankfurt banks (€ billion) | 1,694.9 | |
| Market prices of Frankfurt financing shares (average value in €) | 35.00 | |
| Fund in/outflow to public equity and real-estate funds (million €) | 7,823.3 | |
| Profits before taxes of Frankfurt's largest financial institutions (million €) | -296 | |
| Dimension banking system stability (Index) | 100.9 | |
|---|
| Financial resources of private households in Germany (billion €) | 4,291 | |
| Market assessment of the solvency of Frankfurt's major banks (%) | 88.9 | |
| Deposits of non-banks at Hesse banks (million €) | 472,900 | |
The basis of all indicator values is 2004 QI = 100; all nominal variables were adjusted for price with the deflationary factor of gross domestic product.
Source: Internal calculations and estimates, Professor Dr. Paul G. Schmidt and Fabian Gehlhaar, Department of Economics, Frankfurt School of Finance & Management (for more detailed information on the data sources please refer the excel-sheets available for the specific dimensions).
