Global Financial Centres Index 9 (GFCI 9)

The Global Financial Centres Index (GFCI) provides profiles, ratings and rankings for 75 financial centres, drawing on two separate sources of data – instrumental factors (external indices) and responses to an online survey.

The main headlines of GFCI 9 are:

• there remains no significant difference between London, New York and Hong Kong in the GFCI 9 ratings; respondents continue to believe that these centres work together for mutual benefit;
• confidence amongst financial services professionals has fallen since GFCI 8, as shown by lower overall ratings – 47 centres have lower ratings in GFCI 9 with only 25 centres rated higher (three centres have the same ratings as in GFCI 8). Chart 1 shows the decline in overall ratings.
• Asia continues to exhibit enhanced competitiveness with eight centres in the top twenty (against six North American centres and five European ones). In GFCI 1 (March 2007) there were just three Asian centres in the top twenty. Seoul was the largest riser moving into 16th place, up 25 points in the ratings;
• when questioned about which financial centres are likely to become more significant in the next few years, the top five centres mentioned are all Asian – Shanghai, Singapore, Seoul, Hong Kong and Beijing. Asian cities also fill the top six places when respondents indicate where their organisations are most likely to open new offices
• despite Dubai’s widely publicised economic problems it still holds top position in theMiddle East (and 28th overall), followed by Qatar which has moved up four places. The rating gap between these two centres has halved since GFCI 8 and is nowonly eight points. Bahrain continue to slip, down seven places to 49th (the largest decline this time);
• offshore centres (with the exception of the British Virgin Islands) fell further than the average, continuing a trend since the financial crises began. Jersey and Guernsey remain the leading offshore centres.
• Dublin continues its decline in GFCI. Dublin’s International Financial Services Centre is separate fromthe domestic banks and represents a distinct regulatory agenda for the EU and Irish regulators. The trouble that the domestic banks find themselves in has, however, continued to damage Dublin’s reputation.