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| London is the world's top financial services centre - - Credit: Vic Thomasson/City of London |
The latest Global Financial Services Centre Index report commissioned by the City of London Corporation says that London still retains its position as the leading international global financial centre, although the gap over New York has narrowed.
Since the last report in September 2007, the lead over New York has halved to nine points, with leading City figures citing the Northern Rock issue, proposed non-dom taxation changes and concerns about the overall taxation regime.
London is shown as the global leader with 795 points (806 in the second GFCI), over New York on 786 (787). Hong Kong is in third place, followed by Singapore 675 (697), Zurich 665 (666), Frankfurt 642 (649) and Geneva 640 (645).
Dublin's International Financial services Centre (IFSC) at 613, has a 13th ranking compared with 15th last September, and up from 22nd place in March of last year.
Asset managers gave Dublin a 10th ranking behind Edinburgh and Frankfurt. Insurance executives list Dublin in seventh position, immediately behind Singapore and Tokyo. Both groups listed London and New York as their top two centres. Dublin was the 12th most expensive city for office space.
Factors taken into account include property costs, regulation and taxation, access to customers, the supply of skilled workers, the responsiveness of government to business’s needs and the overall quality of life.
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Table 1: The GFCI 3 Ratings of the Top Ten Financial Centres (Figures in brackets are the ranks and ratings of GFCI 2)
| Centre |
Rank |
GFCI Rating* |
Overall Assessment |
|
London |
1 (1) |
795 (806) |
London remains in top place in GFCI 3, despite losing 11 points from its rating in GFCI 2, after slipping slightly across the board in assessments made after the difficulties of Northern Rock and the publication of proposed changes in the tax treatment of non-domiciled residents, and in the light of continuing criticism of its airport and other transport infrastructure. London does, however, remain in the top quartile of instrumental factors (see Appendix C), and is still rated very highly by most questionnaire respondents, demonstrating its resilience as a financial centre. |
|
New York |
2 (2) |
786 (787) |
New York also remains in the top quartile in over 80% of its instrumental factors and has only dropped by one point since GFCI 2. For the first time, respondents from the banking sector rated it more highly than London, and it remained strong in all other sectors in spite of continued criticism from respondents over burdensome regulatory requirements under Sarbanes-Oxley. |
|
Hong Kong |
3 (3) |
695 (697) |
Hong Kong remains comfortably in third place, losing only two points overall in the ratings. It also retained a strong position in the five key competitiveness areas, though slipping one place to 4 th among respondents in the insurance sector. |
|
Singapore |
4 (4) |
675 (673) |
Singapore performs well in GFCI 3, moving two points closer to Hong Kong. It was one of only two of the top ten to gain points (the other being Tokyo), and was rated 5 th in the world by respondents in the insurance sector, where it had failed to make the top ten previously. Singapore’s banking regulatory environment is still perceived as very strong. |
|
Zurich |
5 (5) |
665 (666) |
Zurich remains the strongest niche centre in GFCI 3. Private banking and asset management are its key specialisms. Its high ratings in the key areas of competitiveness have not changed since GFCI 2 and it has gained 35 points in Insurance. |
|
Frankfurt |
6 (6) |
642 (649) |
Frankfurt remains a key European hub for finance. It improved its standing on people and labour issues since GFCI 2 among respondents, and remained strong on other competitive factors, including professional services. |
|
Geneva |
7 (7) |
640 (645) |
Geneva is the third financial centre in continental Europe, with continuing high ratings for asset management, banking, and government/regulatory issues. It has, however, slipped in ratings for insurance and professional services. |
|
Chicago |
8 (8) |
637 (639) |
The number two centre in the US received higher ratings in GFCI 3 than previously in several competitive areas, especially business environment, and general competitiveness, as well as for banking and government/regulatory issues. |
|
Tokyo |
9 (10) |
628 (625) |
Tokyo has overtaken Sydney to move into ninth place. It and Singapore are the only two centres in the top ten to gain points in the GFCI 3 ratings. Its economy continues to strengthen, and it has the second-largest stock market in the world (by capitalisation). These two features offset long-term regulatory difficulties and poor access to international financial personnel. |
|
Sydney |
10 (9) |
621 (636) |
Sydney dropped to 10 th place in GFCI 3, but was rated highly by respondents in the banking sector and will continue to be a key regional hub in Asia-Pacific. In spite of its geographic isolation, it has strong advantages in English language markets, and quality of life. |
* - the theoretical maximum GFCI rating is 1,000
