Hessen

Hesse exists because finance exists—and because Frankfurt captured continental European banking before Brexit made it permanent. The state's GDP per capita exceeds the national average by 12.4%, driven by Frankfurt's unique position as home to both the European Central Bank and Deutsche Bundesbank (the only city globally with two central banks). In February 2024, Germany won the competition to host the EU's Anti-Money Laundering Authority (AMLA) in Frankfurt, with €20 million committed for establishment. Seven of Germany's ten largest banks—Deutsche Bank, DZ Bank, KfW, Commerzbank, J.P. Morgan SE, Helaba, and ING Deutschland—maintain headquarters here, with combined balance sheets of €3.9 trillion (35% of total German banking). Around 66,200 people work in Frankfurt banking, expected to reach 73,500 by end of 2025—a 4% increase. The 371 ESG fintechs operating across Europe by December 2024 demonstrate Frankfurt's evolution from traditional banking to sustainable finance. Hesse demonstrates what economists call 'agglomeration effects': banking clusters where banking already clusters, creating self-reinforcing concentration. Post-Brexit, this concentration accelerated as institutions requiring EU market access relocated from London. By 2026, Frankfurt will continue consolidating its position as continental Europe's financial capital—not through growth but through competitors' withdrawal, inheriting what London's departure left unclaimed.