The biannual survey of 3,246 respondents showed that London’s rating had fallen as a result of concerns about Britain’s future in the EU, financial scandals in the City, doubts over the future of Scotland within the UK, and a growing regulatory burden. It is the first time the index has not ranked London the top financial centre since it was launched in 2007.
New York’s lead over London is slim – two points on a scale of 1,000 – although London fell by the most of any of the top 50 centres since the GIFC index was last compiled six months ago.
The survey's authors said London's slip in the ranking reflected concerns that financial services company executives are currently expressing about whether to allocate resources to London, and increases speculation that some will choose to shift staff and operations to the US or Asia instead.
The top four financial centres remain the same: New York, London, Hong Kong and Singapore – but other centres are catching up, the GFCI reveals.
Three years ago the difference between first and 10th centre on the list was 117 points, but now the top ten centres are within 75 points of each other.
Gibraltar moves 17 places up
Gibraltar posted the sharpest gain in terms of points in the latest ranking, gaining 67, and rising 17 places up to 53rd place, while Casablanca has moved onto the league table for the first time, coming in at 62nd. This may reflect efforts by the Moroccan government in recent years to create a regional financial centre there.
In Asia, the larger financial centres are pulling away from the smaller ones, the GIFC survey also reveals. Hong Kong, Singapore, Tokyo, Seoul and Shenzhen are doing significantly better than Kuala Lumpur, Manila, Jakarta and Mumbai, for example.
In the Middle East, Riyadh was the biggest gainer in the latest GIFC index, rising 16 places to 31st spot, while Bahrain rose 12 places to 40th. Tel Aviv climbed 11 places to become the Middle East's top financial centre in the 21st spot, moving ahead of Qatar and Dubai in the process (now in 26th and 29th places, respectively). Abu Dhabi also rose, by 10 places to 32nd place.
Europe's centres decline
Europe’s financial centres were pulled lower in the GFCI by political uncertainties in the region, with 23 of the 27 European centres sliding down the rankings.
Significant decliners included Copenhagen, Edinburgh, Dublin, Madrid, Lisbon, and Rome.
Athens, in last place, or 83rd on the list, is now 82 points behind of Reykjavik, second to last. Athens also had the distinction of registering the largest point fall since the last ranking six months ago, dropping by 46.
Chris Cummings, chief executive of the CityUK, the lobby group for London's financial centre, said London's fall from the top position reflected the increasing appeal of growing international financial centres such as Hong Kong, and called on Europe's policymakers to regard it as a wake-up call.
“London is Europe's financial centre, and is hugely important to the continent's ability to finance growth and create jobs by attracting global investors,” Cummings said.
He highlighted the importance of the City of London not only to the UK but also to the European Union.
“Last year the UK's export earnings from financial and related professional services were £61bn, more than all other exporting earning sectors combined," he said. "This is why the UK cannot afford to drop down the global rankings, as financial services help offset the deficit in goods exports, and means the UK can pay its way in the world.”
'Likely to be more significant'
Ten financial centres are described as being "likely to become more significant" in the next few years. Although Casablanca tops the list, because it was mentioned by the most respondents interviewed by the GIFC index's researchers, most of the rest are in the Asia-Pacific region. They are, in descending order of respondent mentions, Casablanca; Busan; Singapore; Hong Kong; Shanghai; Dalian; Seoul; Dubai; Luxembourg; and London.
The survey is carried out by the London-based Z/Yen Group and currently sponsored by the Qatar Financial Centre Authority. When it was first launched in 2007 it was sponsored by the City of London Corporation.
Global International Financial Centres Index 15
| Centre | GFCI 15 | GFCI 14 | Change |
| New York | 1 | 2 | +1 |
| London | 2 | 1 | -1 |
| Hong Kong | 3 | 3 | — |
| Singapore | 4 | 4 | — |
| Zurich | 5 | 6 | +1 |
| Tokyo | 6 | 5 | -1 |
| Seoul | 7 | 10 | +3 |
| Boston | 8 | 7 | -1 |
| Geneva | 9 | 8 | -1 |
| San Francisco | 10 | 12 | +2 |
Source:Z/Yen Group
