London loses out to New York in financial centre rankings
LONDON has been replaced by New York as the world’s top financial centre in a think tank’s latest rankings, due to uncertainty over the Brexit outcome.
The Global Financial Centres Index (GFCI), compiled by think tank Z/Yen each March and September, measures financial centres based on the business environment, human capital, infrastructure, financial sector development and reputation.
London dropped eight points to a rating of 786 on the GCFI index slipping to second place behind New York, which scored a rating of 788.
The next four financial centres were on the list were all Asian with Hong Kong third followed by Singapore, Shanghai and Tokyo.
“In a competitive world we cannot afford complacency. London and New York have long vied for the top spot of this index and the uncertainty around the future shape of Brexit is likely to be factor in their latest switch in positions,” said Miles Celic, chief executive of TheCityUK, which represents the interests of London’s financial services industry.
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“Most notable in this latest version of the GFCI is the continuing steady rise of the Asian centres.
“Given the fall in a number of North American centres as well, it is Asia, not Europe, where the challenge to London and the UK will come from in the years ahead.”
In total, there were 12 European centres within the top 50 Z/YEN GFCI, down from 14 in March this year.
Four of those 12 European centres were UK financial centres as well as London these included Edinburgh, Jersey, and Glasgow.
“The UK remains a world-leading financial centre and it is important we work hard to maintain this position post-Brexit,” said Stephen Jones, chief executive of banking trade body UK Finance.
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“We are and should always seek to be the safest, most transparent and best regulated place for banking and other financial service providers to do business.
“It is also crucial to provide firms with certainty over future financial services trade between the UK and EU and to maintain access to the best talent from Europe and around the world.”
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