With the European sovereign debt crisis extending into another year, the Libor scandal shaking the banking world and the global economy remaining flat, little appears to have changed when it comes to the appeal of the world's leading international financial centres (IFCs). The Banker’s ranking of financial hubs shows no movement in the top five positions, with New York retaining the lead thanks to its performance in indicators such as volumes of international debt securities issued, stock market capitalisation and assets under management. London is still in second place, but at a larger distance from its North American rival.
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The most notable mover in the top 10 is Amsterdam, which has climbed up to ninth place from 13th last year. The Dutch capital has retained its appeal as a business location – it sits in fourth place in the business friendliness table, the same position it held last year – and has climbed up the financial markets table, reaching sixth place from ninth in the 2011 ranking. It has jumped to fifth place in the assets under management ranking, after not featuring in the top 10 at all last year.
Further down the ranking, Chicago has jumped five positions to 15th place, up from 20th last year. The US city comes third in the North American rankings, after New York and Toronto.
Frankfurt leads again the new foreign listings ranking, followed by Mexico City. Last year’s second largest IFC by this measure, New York, now sits in fourth place, behind London in third.
London still top in Europe
Frankfurt and Amsterdam’s improved performances have not threatened London’s leading IFC status in western Europe. The UK capital remains the top financial hub in the region and the most sought after IFC by foreign direct investors, and it has retained its title as the most business-friendly IFC in the world. Frankfurt and Amsterdam have, however, displaced Paris from the second place it occupied in last year's western European regional ranking, pushing it down to fourth place.
Singapore, Hong Kong and Sydney retain the top three places in the Asia-Pacific regional ranking. Beijing and Shanghai sit in eight and ninth place in the regional table, respectively, with Beijing recording the largest number of banking assets of any IFC in the global ranking. Shanghai is fourth in the global stock market capitalisation table and sixth in the inward foreign direct investment (FDI) ranking.
In Latin America, Mexico City leads the regional ranking, thanks mainly to the high level of internationalisation of its stock exchange. It is still São Paulo, however, that hosts the largest stock market in the region and the Brazilian IFC ranks 10th in the global stock market capitalisation table.
In the Middle East, Dubai continues to lead the way, faring particularly well in terms of attracting FDI to its financial sector. As was the case in the 2011 regional rankings, Doha (Qatar) and Manama (Bahrain) follow in second and third place, respectively.
The ranking of specialised financial centres finds the Cayman Islands still in the top position, followed by Guernsey in second place. The Bahamas has moved up to third position, leapfrogging Cyprus which has dropped to fifth.
Methodology
The Banker’s ranking of international financial centres is based on data ranging from financial markets indicators to economic potential to business environment factors. The ranking focuses on the level of international business and the value offered to international institutions seeking to expand their international operations.
In recognition of the fact that data for specialised financial centres is seldom consistent with that for mainland financial centres, The Banker has surveyed each specialised IFC and has compiled a separate table using data relevant to these locations. Publicly available data sources were used as well as The Banker Database and fDi Intelligence.
Click on the link below for a PDF version of the complete results:
