The Corporation of London released a report on “The Competitive Position of London as a Global Financial Centre”, based on a survey of opinion of professionals in the financial services industry in over 20 countries. The main competitive factors are the availability of skilled people and the regulatory environment.
According to the report London and New York are the only two genuinely global financial centres at present. Respondents believe that other financial centres such as Frankfurt, Paris and most of the Asian centres will remain as national financial centres. London and New York have extended their lead over Frankfurt and Paris since 2003.
The most important competitive factors for financial centres include the availability of skilled personnel; the regulatory environment; access to international financial markets; availability of business infrastructure; and access to customers.
An argument has been made that financial centres will be weakened by technology, outsourcing and off-shoring. The research indicates that financial centres may lose certain types of commoditised activities to low cost cities although important parts of the industry, companies’ headquarters and their most skilled employees, will continue to cluster in financial centres
Views on a third global financial centre are split. Most people agree that if a third global financial centre develops it is most likely to be in China and probably in Shanghai.
Full report
Executive summary
© Corporation of London
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