How banks are helping to fix Frankfurt’s crisis-stricken district
8 mins read

How banks are helping to fix Frankfurt’s crisis-stricken district

Frankfurt am Main is known not only as the birthplace of its most famous poet, Johann Wolfgang von Goethe, and for Germany’s largest airport, but also for its unique status as the home of two central banks – the European Central Bank and the Deutsche Bundesbank – the German stock exchange, and which the hub of Germany’s banking sector and wider financial sector.

In recent years, however, Frankfurt – once close to being the capital of the former West Germany – has been shaped less by its skyscrapers or its cultural heritage. For the thousands of trade fair visitors, business travelers, commuters and tourists arriving in Frankfurt, one thing increasingly stands out: the deteriorating condition of its train station district, the Bahnhofsviertel.

Broken beer bottles, trash and discarded crack cocaine pipes litter the streets of the Bahnhofsviertel. The misery in one of Frankfurt’s smallest neighborhoods is most visible in the people who live in the area: beggars, homeless people and people who openly use drugs.

City administration has addressed these issues in the past with varying levels of effort. But pressure on the city to improve the situation intensified in the summer of 2024 during Germany’s hosting of the UEFA European Football Championship. Ahead of the England v Denmark match in Frankfurt, The Sun warned British fans about the train station district, calling it “Zombieland”.

Corporate sponsored initiative

More and more companies are getting involved in proposing improvements, especially those operating in or near the Bahnhofsviertel. A joint initiative between the Bundesbank; lenders such as Deutsche Bank, Bank of America and DZ Bank; and companies such as Merz and Nestlé, joined forces in October under the so-called BHV initiative to support social projects in the district.

According to the Bundesbank, the 11 companies in the initiative together employ around 26,000 people. As a first step, 400,000 euros are allocated to four social organizations in the area. The funds will be used to support projects such as reintegrating drug users into the workforce and expanding medical services.

The aim is to “make a positive contribution to the current difficult situation in the Bahnhofsviertel and support selected social projects,” says the Bundesbank.

Frankfurt’s approach to addiction

The city has decades of experience dealing with drug addiction. In the late 1980s, during the height of the city’s drug crisis, as many as 1,000 people every day openly consumed drugs such as heroin in the Taunusanlage, a green area near the Bahnhofsviertel.

In response to this, a new concept called the “Frankfurter Weg” (Frankfurt approach) was introduced. This strategy treated drug users not as criminals, but as individuals suffering from addiction.

A key element of this approach was the establishment of consumption rooms, where people with addictions could use drugs in a supervised environment with access to clean needles and running water. This pragmatic approach led to a significant reduction in drug-related deaths in the city, dropping from 147 per year in the early 1990s to about 30 per year today.

The recent deterioration

Debates have been sparked recently about whether new strategies and policies are needed, especially as many believe the situation has worsened. The Bahnhofsviertel has always been a place of contrasts – “it’s part of its character,” says a Deutsche Bank spokesperson. But in recent years, and especially after the Covid-19 pandemic, the problems have “in some cases increased massively”, they add.

Bernd Werse, director of the Institute for Addiction Research Frankfurt, also notes a significant deterioration during the pandemic. Although there were already problems exacerbating the situation before then, homelessness reached a new height during the pandemic, he says.

Due to hygiene regulations, spaces in auxiliary facilities had to be temporarily reduced and opening hours were limited, says Oliver Müller-Maar, deputy head of Frankfurt’s narcotics department. “As a result, people increasingly settled on the street, literally became more visible and continued their outdoor life even after the pandemic.”

Some also point to the growing presence of crack cocaine as a significant factor contributing to the worsening conditions, having replaced heroin as the city’s most consumed drug.

“The drug scene has changed significantly as a result,” says Müller-Maar. Due to the extreme dynamics of consumption, people quickly smoke crack cocaine on the street instead of going to consumption rooms. “The scene has become more aggressive, leading to an increase in conflicts in public spaces,” he adds.

Nevertheless, crack cocaine has been present in Frankfurt’s drug scene since the turn of the millennium, says Werse. And despite this, the number of drug-related deaths in Frankfurt has remained relatively stable for several years, defying the national trend. However, this stability contrasts with the daily impressions many people experience when walking through the train station district, where the situation seems to have deteriorated.

Werse says this perception may be due to the shrinking area in which these issues are concentrated. “The stage is confined to an increasingly smaller space, with fewer places for people to gather,” he says.

The business reality of social affairs

The increased commitment from companies in the area also has an economic dimension. The train station district in Frankfurt is an important economic hub for companies and institutions, especially in the service sector and increasingly in the financial sector, says Müller-Maar.

Frankfurt competes with major international financial hubs, notes the Deutsche Bank spokesman. “We are competing for the same talent and companies that bring jobs to Frankfurt.” If employees feel unsafe walking through the district, if companies advise their visitors to avoid the area and if even international media reports critically about the conditions, there are negative consequences for the place’s reputation, says the spokesperson.

Nestlé, another participant in the BHV initiative, recently opened its new German headquarters near the Bahnhofsviertel in November. “As a new neighbor, we want to actively contribute and work together to create a vibrant, clean and safe train station district,” Nestlé Germany CEO Alexander von Maillot said at the opening.

Support system and next steps

“We are very grateful for the generous support,” says Sophie Hanack, who heads the drug support center La Strada in Frankfurt, one of the social institutions benefiting from the BHV initiative. The drug support center offers two supervised drug consumption rooms, psychiatric consultations, legal advice and even overnight accommodation.

The funds will be used to renovate and expand the contact cafe and expand its capacity. “It’s about giving these people a warm and safe space where they can rest before they go back to the streets,” the director explains.

For years, the city has maintained a relatively low number of drug-related deaths, “thanks to our strong connections with clients and integration into support systems,” says Hanack. “Despite all the complaints, criticism and new demands for improvements, we should remember what we already have. There is a structure here, a support system in place.”

The goals of the initiative and of the drug support center match, she adds. “Obviously, it’s also about easing public spaces.” However, she points out that the 100,000 euros her organization receives from the initiative may sound like a lot of money, but it only allows for small changes. Regarding the initiative, Hanack says: “We would be happy if it could continue”.

DZ Bank, one of the contributors, tells The Banker that many other companies have expressed interest in joining the initiative. And Deutsche Bank notes that this is not a one-off initiative: “The support is intended to be long-term and planned over several years,” it says.

Antonia Mannweiler is a journalist at the German TV company ARD