London remains the world’s biggest financial center, ahead of New York and Hong Kong.
According to the latest Global Financial Centres Index published by Z/Yen and the China Development Institute, London only lost two index points. The composite index ranks 92 cities in the world. It has been compiled since 2007 and takes into account variables ranging from effective tax rate and infrastructure to outlook and market confidence. The index combines targetted surveys and the use of data from various sources, including the OECD and the World Bank.
New York remains the second most important financial center, having lost 24 index points, while Hong Kong has climbed to third place becoming more significant than Singapore.
There has been great speculation of how London stands to be affected by Brexit negotiations. The consensus is that Frankfurt, Dublin, Paris and Amsterdam stand to inherit part of the City’s financial services business. Their relative strength continues to increase as London stands to lose passporting rights that allow access to the Single European market.
But, for the moment, London continues to spearhead Europe’s financial industry.