EID: Frankfurt financial marketplace wants to strengthen ties with Paris
Since the Brexit referendum in 2016, the Frankfurt financial marketplace has received 60 requests for financial establishment registrations under its “welcome to Frankfurt” campaign, Hubertus Väth, managing director of Frankfurt Main Finance, announced at the European Investors Day, held by L'Agefi and Asset News on 10 December in Frankfurt. Frankfurt Main Finance is the equivalent of Paris Europlace in France.
Many of these requests have come from banks and, in particular, four of the six largest US banks, four of the five largest Japanese banks, two of the four largest UK banks, and two Swiss banks (but not Credit Suisse, which is set up in Berlin).
“But it’s a pity that people in Paris look towards London and not Frankfurt when they think of another financial marketplace. Likewise, people in Frankfurt look towards London and not towards Paris. We have to work together to strengthen our ties and our cooperative efforts”, Väth said, adding that it is absolutely necessary “to complete the Banking Union and the Capital Markets Union so that the various financial players can generate economies of scale”. Väth believes that clearing could be one source of cooperation in a post-Brexit Europe, with an expanded role for the ECB in supervising it.
In the second half of 2020, Germany will preside over the European Council.
He recalled that in the second half of 2020, Germany will preside over the European Council. Some 24 months after the CMU launch, only three of 32 projects have been started. But over the past 15 months France and Germany have launched more than 10 projects, showing how committed the two countries are.
Väth expects the new European Commission to focus on ESG in 2020. “There is also an alignment on this issue between what Christine Lagarde wants as the head of the ECB and what Ursula von der Leyen wants as the head of the EC”, he said, adding that major European banks are beginning to be quite aware of the issue.
The Frankfurt financial marketplace, meanwhile, has launched several ESG initiatives to define green bonds and green loans, but Väth believes that European financial markets must stop competing in this area. “It’s not a matter of where Europe’s green financial centre will be; in fact, Europe itself will be the green financial centre. The standards that we set could serve as standards for the rest of the world.”