Thursday 28 February 2008
City's third Global Financial Centres Index shows London still
No1 globally, despite Northern Rock issue and ‘non-dom’ tax
factors
Today (Thursday) a 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 ago 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).
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.
Download the report
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
Ends
Notes for editors
City of London Corporation:
The City of London Corporation is committed to maintaining and
enhancing the status of the wealth and tax-generating business of
the City as the world's leading international financial and
business centre through its policies and services. Examples are the
extensive overseas business missions on behalf of UK-based
financial services and the wide-ranging economic development,
research and regeneration effort the City of London Corporation
undertakes across London. It also runs the City Office in Brussels
on behalf of the City and City Representations in Beijing, Shenzhen
and Shanghai – and a City Office in Mumbai.
Although the City of London Corporation provides local
government services for the City, the financial and commercial
heart of Britain, its responsibilities also extend far beyond the
City boundaries and include management of the Barbican Centre,
Central Criminal Court at the Old Bailey, Epping Forest, Hampstead
Heath, three wholesale food markets, as well as acting as the
London Port Health Authority – and running the Animal Reception
Centre at Heathrow.
Press contact
For more information, Contact Greg Williams, 020 7332 1455,
07889 167 205