Finance centers

New York widens its lead over London in the index of the best financial centers

The US financial capital still ranks first in the Global Financial Centers Index for March 2022

LONDON, UK — New York has strengthened its lead among the world’s major financial centers, with London losing ground to increasingly competitive rivals in the United States and Asia, the Global Financial Centers Index (GFCI) showed. ) on Thursday, March 24. .

The index from think tank Z/Yen Group in partnership with the China Development Institute showed U.S. financial capital in first place with 759 points, down 3 points from six months ago.

The rankings are based on surveys and 150 factors, with quantitative measures from the World Bank, the Economist Intelligence Unit, the Organization for Economic Co-operation and Development and the United Nations.

London held on to second place despite falling 14 points to 726. A similar fall next time around would put it behind Hong Kong, Shanghai and Los Angeles, and tied with Singapore, based on their current performance.

London is now the only European center in the top 10 after Shenzhen replaced Paris in 10th place.

The GFCI said Russia’s invasion of Ukraine will affect the future rankings of Moscow and St. Petersburg, which are expected to drop after reaching 50th and 110th respectively this time.

London’s rankings have come under close scrutiny since Britain’s departure from the European Union, which largely cut Britain’s financial sector from the bloc.

In the GFCI index of fintech ratings, a sector that Britain prioritizes in its efforts to keep London attractive, New York and Shanghai retained the first and second positions respectively, while Beijing and San Francisco overtook London to take third and fourth place.

Brexit has led banks to ask Britain to boost the capital’s competitiveness, with listing rules already relaxed.

The UK Treasury plans to give regulators a formal competitiveness mandate, although bank safety, consumer protection and market order remain their top priority.

“A primary objective aimed at promoting competitiveness is really a bad idea,” Bank of England Deputy Governor Sam Woods said this week. – Rappler.com