Foreign Banks Attraction To The Financial Centre Frankfurt An Inverted U Shaped Relationship
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Foreign Banks Attraction to the Financial Centre Frankfurt an Inverted U -Shaped Relationship
Author | : Michael H. Grote |
Publisher | : |
Total Pages | : |
Release | : 2010 |
Genre | : |
ISBN | : |
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This article traces the location of foreign banks in Germany from 1949 to 2006. As suggested by New Economic Geography models, we find an inverted U -shaped concentration of foreign banks in Germany. Only after a competition between several cities, Frankfurt has emerged as the pre-eminent financial centre, triggered by the historical event of setting up the German central bank in Frankfurt. After a strong increase, Frankfurt's share in the location of foreign banks in Germany decreases slowly but significantly since the mid-1980s. We conclude that there will be a lesser role in Europe for second-tier financial centres in the future.
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