The recovery of the global financial sector is accelerating. Europe’s top financial centres like London, Paris and Frankfurt are profiting from this upswing, too. A study by the Landesbank Hessen-Thüringen revealed that the number of banks in Frankfurt after the dotcom bubble burst at the beginning of the millennium fell more sharply after the financial crisis. In 2011, 260 domestic and foreign financial institutions were based in Frankfurt – no fewer than before the financial crisis.
Still, we Europeans must be careful not to miss the boat. The nations of Europe have understood that they must bundle their strengths and join together to represent their common interests. To this end, Frankfurt can contribute its in-depth expertise in risk management and regulatory issues. The ostensible stabilization should not blind us to the need for an objective analysis of the crisis and revision of our financial architecture. Moreover, what counts for Europe in particular is internal and external re-regulation so that regulation arbitrage is permanently prevented. And the initially positive news must be seen in relation to competitors outside Europe. After all, the financial centres in Asia and Oceania are currently experiencing a far more dynamic upturn than that in “old Europe.”