As the economic scales tip in favour of emerging economies – particularly those in Asia – it seems increasingly likely that one of the region's leading financial centres will steal the status of global wealth management capital from Switzerland. The question is, which city will it be?
As Asia's population grows richer, the continent's wealth management industry is struggling to keep pace and meet the needs of the ever-expanding number of high-net-worth individuals. Gone are the days of simply poaching such staff, and many banks are now focusing on producing home-grown talent.
Singapore and Hong Kong continue to attract the highest levels of foreign direct investment among Asian international finance centres. But there is change afoot elsewhere, with increasing levels of investment in Beijing causing it to replace Shanghai as the third most attractive Asian IFC for FDI.
The Asian city state of Singapore attracted more foreign investment in its financial sector than any other IFC in the world over the past year. Geneva, Edinburgh and Glasgow were notable risers in the ranking, while troubled Madrid lost significant ground.
Singapore is the world’s third highest ranked International Finance Centre, according to The Banker’s 2010 ranking. But in these days of volatile capital flows and worries about bank safety, how should a small country manage itself as an IFC so as to maximise the benefits and minimise the risk?
Singapore's banks have reported stable but modest profits in recent years, but this is coming under threat from low interest rates and a lack of opportunity in an overcrowded market, leading many to consider international expansion. Writer Michelle Price