Download or read book Foreign Banks Attraction to the Financial Centre Frankfurt an Inverted U -Shaped Relationship written by Michael H. Grote and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.