Hessian Government Supports Research in Finance at the House of Finance with 13 Million Euro


The Center for Financial Studies and Goethe University Frankfurt were successful in their application for a research center in the “Landes-Offensive zur Entwicklung wissenschaftlich-ökonomischer Exzellenz” (Program for the Development of Scientific-Economic Excellence), short: LOEWE, sponsored by the Hessian Government. The Ministry of Higher Education, Research and the Arts will support the new Center called SAFE “Sustainable Architecture for Finance in Europe“ with 13 million euro in the first three years of a six year period. “The new LOEWE Center is a huge success for Goethe University and the Center for Financial Studies. With this decision, the Hessian Government acknowledges the excellent academic reputation of the House of Finance and strongly supports its further development”, said Rainer Klump, Vice-President of Goethe University.

The new Center, that will be located in the House of Finance, will investigate the requirements for an optimal regulatory framework for financial markets and their players. Fully functional financial markets are indispensable for a flourishing economy, growth, and prosperity. Recent years have shown, however, that disturbances in the financial markets involve tremendous risks for the economy, society and governments. “Therefore, we need a framework that is flexible enough to allow for innovation and competition, and at the same time as rigid as necessary to ensure stability”, said Jan Pieter Krahnen, Director of the Center for Financial Studies and Scientific Coordinator of the new Center.

Today’s financial markets are characterized by a dynamic interaction between the economy, politics and central banks. In order to meet the politico-economic challenges for a sustainable financial environment in Europe and the world, the Center will follow an interdisciplinary approach. More than 35 professors in the areas of finance, micro- and macroeconomics, financial mathematics, marketing and law will be colaborate. The Center will also collect unique data sets for conducting research on all key areas. Such data sets will enable researchers – in some areas for the first time – to conduct research with a clear focus on the European institutional setup.

The new center will not only conduct research and train young professionals, but it will also reach out into the community by creating a platform between academics and policy makers. In a continuing dialogue with Berlin, Brussels and Wiesbaden, SAFE will provide independent, research-based policy advice that will be highly beneficial to policy makers and supervisors.

The application for the new LOEWE Center „Sustainable Architecture for Finance in Europe“ was submitted by the Center for Financial Studies and Goethe University Frankfurt with its Faculties of Economics and Business Administration and Law. Scientific Coordinator is Prof. Dr. Jan Pieter Krahnen, Administrative Coordinator is Prof. Dr. Uwe Walz, Coordinator for Research Networks is Prof. Michael Haliassos, Ph.D.