Financial centre

The International Monetary Fund (IMF) classes major financial centres as: International Financial Centres (IFCs), such as New York City,{{cite news |author=Huw Jones |date=27 January 2020 |title=New York surges ahead of Brexit-shadowed London in finance: survey |url=https://www.reuters.com/article/us-survey-banks/new-york-surges-ahead-of-brexit-shadowed-london-in-finance-survey-idUSKBN1ZQ0BE |access-date=27 January 2020 |work=Reuters |quote=New York remains the world’s top financial center, pushing London further into second place as Brexit uncertainty undermines the UK capital and Asian centers catch up, a survey from consultants Duff & Phelps said on Monday.}} London, and Tokyo; Regional Financial Centres (RFCs), such as Hong Kong, Shanghai, and Frankfurt; and Offshore Financial Centres (OFCs), such as the Cayman Islands, Dublin, Cyprus, and Luxembourg.{{efn|"Offshore" does not refer to the location of the OFC (i.e. many FSF–IMF OFCs, such as Luxembourg and Hong Kong, are located "onshore"), but to the fact that the largest users of the OFC are nonresident (i.e. the users are non-domestic).}} The IMF notes some overlap between Regional Financial Centres and Offshore Financial Centres.

File:London_Skyline_(125508655).jpeg, concentrated in the City of London and Canary Wharf, is one of the main global financial centres and a leading centre of technology-enabled financial innovation.{{Cite web |last=Thompsett |first=Louis |date=2024-10-02 |title=Top 10: Fintech Hubs |url=https://fintechmagazine.com/top10/top-10-fintech-hubs |access-date=2025-03-29 |website=fintechmagazine.com |language=en}}{{Cite web |last=Enginsoy |first=Sengul |date=2025-02-06 |title=Top Cities for Fintech Startups |url=https://www.startupblink.com/blog/top-cities-for-fintech-startups/ |access-date=2025-03-29 |website=StartupBlink Blog |language=en-US}}{{Cite web |title=How did London Become a Global Fintech Powerhouse? Elliott Snowball Broadgate |url=https://www.broadgatestaffing.com/blog/2022/10/how-did-london-become-a-global-fintech-powerhouse |archive-url=http://web.archive.org/web/20241206144724/https://www.broadgatestaffing.com/blog/2022/10/how-did-london-become-a-global-fintech-powerhouse |archive-date=2024-12-06 |access-date=2025-03-29 |website=www.broadgatestaffing.com |language=en}}]]

In April 2000, the Financial Stability Forum ("FSF"),{{efn|The FSF is a group consisting of major national financial authorities such as finance ministries, central bankers, and international financial bodies}} concerned about OFCs on global financial stability produced a report listing 42 OFCs.{{cite web|url=http://www.fsb.org/wp-content/uploads/r_0004b.pdf?page_moved=1|title=Report from the Working Group on Offshore Centres|publisher=Financial Stability Forum|date=5 April 2000}} In June 2000, the International Monetary Fund (IMF) published a working paper on OFCs, but which also proposed a taxonomy on classifying the various types of global financial centres, which they listed as follows (with the description and examples they noted as typical of each category, also noted):{{cite web|url=https://www.imf.org/external/np/mae/oshore/2000/eng/back.htm|title=Offshore Financial Centers: IMF Background Paper|publisher=International Monetary Fund|date=23 June 2000}}

{{ordered list

| type = lower-roman|International Financial Centre (IFC). Described by the IMF as being large international full–service centres with advanced settlement and payments systems, supporting large domestic economies, with deep market liquidity where both the sources and uses of funds are diverse, and where the legal and regulatory frameworks are adequate to safeguard the integrity of principal–agent relationships and supervisory functions. IFCs generally borrow short–term from non–residents and lend long–term to non–residents. Examples cited by the IMF included New York City,{{cite news |url=https://www.reuters.com/business/new-york-widens-lead-over-london-top-finance-centres-index-2022-03-24/ |title=New York widens lead over London in top finance centres index|website=www.reuters.com |date=24 March 2022 |access-date=25 June 2022|last1=Jones |first1=Huw }}{{title missing|date=July 2022}} London, and Tokyo.|Regional Financial Centre (RFC). The IMF noted that RFCs, like IFCs, have developed financial markets and infrastructure and intermediate funds in and out of their region, but in contrast to IFCs, have relatively small domestic economies. Examples cited by the IMF included Hong Kong, Singapore, and Luxembourg.|Offshore Financial Centre (OFC). The IMF noted that OFCs are usually smaller, and provide more specialist services, however, OFCs still ranged from centres that provide specialist and skilled activities, attractive to major financial institutions, and more lightly regulated centres that provide services that are almost entirely tax driven and have very limited resources to support financial intermediation. The IMF listed 46 OFCs in 2000, the largest of which was Ireland, the Caribbean (including the Cayman Islands, and the British Virgin Islands), Hong Kong, Singapore, and Luxembourg.

}}

The IMF noted that the three categories were not mutually exclusive and that various locations could fall under the definition of an OFC and an RFC, in particular (e.g. Singapore and Hong Kong were cited).

International Financial Centres, and many Regional Financial Centres, are full–service financial centres with direct access to large capital pools from banks, insurance companies, investment funds, and listed capital markets, and are major global cities. Offshore Financial Centres, and also some Regional Financial Centres, tend to specialise in tax-driven services, such as corporate tax planning tools, tax–neutral vehicles,{{efn|name=tax|Tax–neutral is a term that OFCs use to describe legal structures where the OFC does not levy any taxes, duties or VAT on fund flows into, during, or exiting (e.g. no withholding taxes) the vehicle. Major examples being the Irish Qualifying investor alternative investment fund (QIAIF), and the Cayman Islands SPC.}} and shadow banking/securitisation, and can include smaller locations (e.g. Luxembourg), or city-states (e.g. Singapore). Since 2010, academics consider Offshore Financial Centres synonymous with tax havens.{{efn|This is since circa 2010, after the post 2000 IMF–OECD–FATF initiatives on common standards, regulatory compliance, and banking transparency, which had significantly weakened the regulatory attraction of OFCs over IFCs and RFCs.}}

{{See also|Offshore financial centre}}

File:Uncovering Offshore Financial Centers Figure 3 Network of ownership flows between countries.jpg.]]

The IMF noted that OFCs could be set up for legitimate purposes (listing various reasons), but also for what the IMF called dubious purposes, citing tax evasion and money–laundering. In 2007, the IMF produced the following definition of an OFC: a country or jurisdiction that provides financial services to non-residents on a scale that is incommensurate with the size and the financing of its domestic economy.{{cite journal|url=http://www.imf.org/external/pubs/ft/wp/2007/wp0787.pdf|title=Concept of Offshore Financial Centers: In Search of an Operational Definition|author=Ahmed Zoromé|publisher=International Monetary Fund|quote=IMF Working Paper 07/87|date=1 April 2007}} The FSF annual reports on global shadow banking use the IMF definition to track the OFCs with the largest financial centres relative to their domestic economies.{{cite web|url=http://www.fsb.org/wp-content/uploads/P050318-1.pdf|title=Global Shadow Banking and Monitoring Report: 2017|date=5 March 2018|quote=Jurisdictions with the largest financial systems relative to GDP (Exhibit 2–3) tend to have relatively larger OFI [or Shadow Banking] sectors: Luxembourg (at 92% of total financial assets), the Cayman Islands (85%), Ireland (76%) and the Netherlands (58%)|page=30|publisher=Financial Stability Forum}}

Progress from 2000 onwards from IMF–OECD–FATF initiatives on common standards, regulatory compliance, and banking transparency, has reduced the regulatory attraction of OFCs over IFCs and RFCs. Since 2010, academics considered the services of OFCs to be synonymous with tax havens, and use the term OFC and tax haven interchangeably (e.g. the academic lists of tax havens include all the FSF–IMF OFCs).{{cite journal|url=https://repository.law.umich.edu/cgi/viewcontent.cgi?referer=https://www.google.ie/&httpsredir=1&article=1716&context=articles|title=Treasure Islands|pages=103–125|author=James R. Hines Jr.|journal=Journal of Economic Perspectives|volume=4|issue=24|date=2010|quote=Tax havens are also known as "offshore financial centers" or "international financial centers", phrases that may carry slightly different connotations but nevertheless are used almost interchangeably with "tax havens|author-link=James R. Hines Jr}}{{cite journal| url= https://eml.berkeley.edu/~saez/course/zucman11.pdf|author=Gabriel Zucman|title=The Missing Wealth of Nations: Are Europe and the U.S. Net Debtors or net Creditors?|journal=The Quarterly Journal of Economics|volume=128|issue=3|pages=1321–1364|date=August 2013|quote=Tax havens are low–tax jurisdictions that offer businesses and individuals opportunities for tax avoidance" (Hines, 2008). In this paper, I will use the expression "tax haven" and "offshore financial center" interchangeably (the list of tax havens considered by Dharmapala and Hines (2009) is identical to the list of offshore financial centers considered by the Financial Stability Forum (IMF, 2000), barring minor exceptions)|author-link=Gabriel Zucman|doi=10.1093/qje/qjt012|hdl=10.1093/qje/qjt012|hdl-access=free}}

In July 2017, a study by the University of Amsterdam's CORPNET group, broke down the definition of an OFC into two subgroups, Conduit and Sink OFCs:{{cite journal |author1=Javier Garcia-Bernardo|author2=Jan Fichtner|author3=Frank W. Takes|author4=Eelke M. Heemskerk | volume=7 | issue=6246 |pages=6246| title=Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network | journal=Scientific Reports | date=24 July 2017|bibcode=2017NatSR...7.6246G|arxiv=1703.03016|doi=10.1038/s41598-017-06322-9|pmid=28740120|pmc=5524793}}

• 24 Sink OFCs: jurisdictions in which a disproportionate amount of value disappears from the economic system (e.g. the traditional tax havens).
• 5 Conduit OFCs: jurisdictions through which a disproportionate amount of value moves toward Sink OFCs (e.g. the corporate–focused tax havens)
  (Conduits are: Netherlands, United Kingdom, Switzerland, Singapore and Ireland)

Sink OFCs rely on Conduit OFCs to re–route funds from high–tax locations using base erosion and profit shifting ("BEPS") tax planning tools, which are encoded, and accepted, in the Conduit OFC's extensive networks of global bilateral tax treaties. Because Sink OFCs are more closely associated with traditional tax havens, they tend to have more limited treaty networks and access to global higher–tax locations.

Prior to the 1960s, there was little data available to rank financial centres.{{rp|1}} In recent years many rankings have been developed and published. Two of the most relevant are the Global Financial Centres Index and the Xinhua–Dow Jones International Financial Centres Development Index.See, for example, {{cite web|author1=Yoshio Okubo, Vice Chairman, Japan Securities Dealers Association|title=Comparison of Global Financial Center|url=http://www.law.harvard.edu/programs/about/pifs/symposia/japan/2014-japan/2014-japan-us-concept-papers.html|website=Harvard Law School, Program on International Financial Systems, Japan–U.S. Symposium|access-date=30 May 2015|date=October 2014}}

{{Main|Global Financial Centres Index}}

File:HK International Finance Centre 200809.jpg building in Hong Kong.]]

The Global Financial Centres Index ("GFCI") is compiled semi-annually by the London-based think tank Z/Yen in conjunction with the Shenzhen-based think tank China Development Institute.{{cite web |title=The Global Financial Centres Index 21 |date=March 2017 |access-date=12 August 2017 |url=http://www.zyen.com/research/gfci.html |publisher=Z/Yen Group |url-status=dead |archive-url=https://web.archive.org/web/20150913172801/http://www.zyen.com/research/gfci.html |archive-date=13 September 2015 }} The 37th edition of the GFCI was published on the 20th March 2025.{{Cite web |title=GFCI 37 Rank - Long Finance |url=https://www.longfinance.net/publications/long-finance-reports/the-global-financial-centres-index-37/ |access-date=2025-03-20 |website=www.longfinance.net}}

London, Paris, Amsterdam and New York have long been at the centre of the global financial system.{{Cite book|url=https://books.google.com/books?id=ItqhNQusviAC&pg=PA13|title=International Banking: 1870–1914|publisher=Oxford University Press|year=1991|isbn=978-0-19-506271-7|editor=Cameron, Rondo|location=New York, NY|editor2=Bovykin, V.I.}}{{cite web|title=What Makes A Successful Global Financial Centre?|url=http://www.gresham.ac.uk/lectures-and-events/what-makes-a-successful-global-financial-centre|publisher=Gresham College|access-date=24 May 2015|date=14 October 2009}} Today there is a diverse range of financial centres worldwide.{{cite web|url=http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/Cost-of-living-and-quality-of-life.aspx|title=Cost of living and quality of life in international financial centres|date=3 August 2012|access-date=23 May 2015|publisher=City of London|author=Mercer|archive-url=https://web.archive.org/web/20150525100247/http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/Cost-of-living-and-quality-of-life.aspx|archive-date=25 May 2015|url-status=dead}} While New York and London (both referred to as Alpha cities) often stand out as the leading global financial centres,{{cite news|title=New York and London vie for crown of world's top financial centre|url=http://www.ft.com/cms/s/0/b388de4c-174b-11e4-87c0-00144feabdc0.html#axzz3azt6Z3LM|access-date=24 May 2015|work=The Financial Times|date=1 October 2014}}{{cite news

|author= Beth Gardiner

|title= The London Banking Center Is Beginning to Feel Like Itself Again

|work= The New York Times: Global Business

|date= 20 January 2010

|url= https://www.nytimes.com/2010/01/21/business/global/21rglofinuk.html

|access-date= 15 January 2011

}} other established financial centres provide significant competition and several newer financial centres are developing.{{cite web|title=From local to global: building a modern financial centre|url=http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/From-local-to-global-building-a-modern-financial-centre.aspx|publisher=City of London|author=Bourse Consult|access-date=24 May 2015|date=18 November 2013|archive-url=https://web.archive.org/web/20150525105318/http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/From-local-to-global-building-a-modern-financial-centre.aspx|archive-date=25 May 2015|url-status=dead}} Despite this proliferation of financial centres, academics have discussed evidence showing increasing concentration of financial activity in the largest national and international financial centres in the 21st century.{{cite book|editor-last1=Jacobs|editor-first1=A.J.|title=The World's Cities: Contrasting Regional, National, and Global Perspectives |date=2013|publisher=Routledge|location=New York|isbn=9780415894852|edition=1st|chapter-url=https://books.google.com/books?id=743UcMiPg1EC&pg=PA24|access-date=29 May 2015|chapter=2: Cities in a World Economy (2006) Saskia Sassen}}{{rp|24–34}} Others have discussed the ongoing dominance of New York and London, and the role linkages between these two financial centres played in the 2008 financial crisis.{{cite journal |last1=Wójcik|first1=Dariusz|title=The dark side of NY–LON: Financial centres and the global financial crisis|ssrn=1890644 |location=School of Geography and Environment, University of Oxford|date=2011|doi=10.2139/ssrn.1890644 |s2cid=219348433 |url=https://ora.ox.ac.uk/objects/uuid:feb2a2bb-2ed9-4163-b37b-5c47a62b1f02 }}

Comparisons of financial centres focus on their history, role and significance in serving national, regional and international financial activity. Each centre's offering includes differing legal, tax and regulatory environments.{{cite news

|author= Patrick McGeehan

|title= After Reversal of Fortunes, City Takes a New Look at Wall Street

|work= The New York Times

|date= 22 February 2009

|url= https://www.nytimes.com/2009/02/23/nyregion/23wall.html

|access-date= 15 January 2011

}} One journalist suggested three factors for success as a financial city: "a pool of capital to lend or invest; a decent legal and taxation framework; and high-quality human resources".{{cite news

|author= Daniel Altman

|title= Other financial centers could rise amid crisis

|work= The New York Times

|date= 30 September 2008

|url= https://www.nytimes.com/2008/09/30/business/worldbusiness/30iht-glob01.1.16579561.html

|access-date= 15 January 2011

}}

New York, London, and Tokyo are in every list of major IFCs. London and New York have at times exchanged places as the worlds preeminent financial centre and London has been competing for New York's crown as a financial capital and Fintech capital of the world.{{Cite web |last=Mucklejohn |first=Lars |date=2024-09-23 |title=London edges closer to New York in battle for financial centre top spot |url=https://www.cityam.com/london-edges-closer-to-new-york-in-battle-for-financial-centre-top-spot/ |access-date=2025-03-29 |website=City AM |language=en-GB}}{{Cite web |last=Norman |first=Samuel |date=2025-03-21 |title=Will London take New York's fintech crown? |url=https://www.cityam.com/can-london-take-new-yorks-fintech-crown/ |access-date=2025-03-29 |website=City AM |language=en-GB}}{{Cite news |last=Rappeport |first=Alan |date=2025-03-19 |title=Trump's Tariffs Have Sown Uncertainty. That Might Be the Point. |url=https://www.nytimes.com/2025/03/19/business/trump-tariffs-economy.html |access-date=2025-03-29 |work=The New York Times |language=en-US |issn=0362-4331}} Some of the major RFCs (see next section), such as Paris, Frankfurt, Chicago, and Shanghai appear as IFCs in some lists.

File:Photos NewYork1 032.jpg on Wall Street, the world's largest stock exchange by listed capitalisation.{{cite web|url=https://www.forbes.com/advisor/investing/nyse-new-york-stock-exchange/|title=NYSE: What Is The New York Stock Exchange|author= Kat Tretina and Benjamin Curry|work=Forbes|date=9 April 2021|accessdate=24 July 2022}}]]

File:Brooklyn Bridge from the boat on the East River, New York City, 20231001 1050 0948.jpg in Manhattan viewed from Brooklyn.]]

• New York City. New York City is the largest centre for trading in public equity and debt capital markets, driven by the size and financial development of the U.S. economy and international activity that takes place there.{{rp|31–32}}{{cite web|url=http://www.bis.org/statistics/r_qa1306_hanx18.pdf|title=Total debt securities|date=June 2013|publisher=Bank for International Settlements|access-date=23 May 2015}} The NYSE and NASDAQ are the two largest stock exchanges in the world. New York also leads in hedge fund management; private equity; and the monetary volume of mergers and acquisitions. Several investment banks and investment managers headquartered in New York City are important participants in other financial centres.{{rp|34–35}} The New York Federal Reserve Bank, the largest within the Federal Reserve System, regulates financial institutions and implements U.S. monetary policy,{{cite magazine| url=https://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine/6| archive-url=https://web.archive.org/web/20100406021652/http://www.rollingstone.com/politics/story/29127316/the_great_american_bubble_machine/6| title=The Great American Bubble Machine| magazine=Rolling Stone| page=6| archive-date=6 April 2010| access-date=27 August 2015| author=Matt Taibbi| date=13 July 2009| url-status=dead| author-link=Matt Taibbi}}[http://www.newyorkfed.org/aboutthefed/index.html/ "About the Fed."] New York Federal Reserve Web page. Footnote upgraded/confirmed 30 March 2010. which in turn influences the world's economy.{{cite news|url=https://www.nytimes.com/2015/08/26/business/economy/will-the-fed-raise-interest-rates-anytime-soon-investors-say-no.html?ref=topics&_r=0|title=Bets That the Fed Will Delay Interest Rate Rise Could Be Premature|first=Binyamin|last=Appelbaum|work=The New York Times|date=25 August 2015|access-date=27 August 2015|quote=In addition, the International Monetary Fund has expressed concern that the Fed, by raising rates, could increase pressure on developing economies.|postscript=none}}; {{Cite news|url=https://www.reuters.com/article/us-britain-boe-carney-idUSKCN1T7132|title=Rich economies must heed policy impact on emerging nations: Carney|date=6 June 2019|work=Reuters|access-date=8 June 2019|language=en}}{{cite news|title=Goldman Sachs Sees Limited Impact of Fed Rate Hike on Emerging Markets|url=http://www.foxbusiness.com/markets/2015/09/18/goldman-sachs-sees-limited-impact-fed-rate-hike-on-emerging-markets/|access-date=23 September 2015|work=Fox Business|date=18 September 2015|quote=emerging market assets will be driven primarily by local fundamentals|archive-url=https://web.archive.org/web/20150923124413/http://www.foxbusiness.com/markets/2015/09/18/goldman-sachs-sees-limited-impact-fed-rate-hike-on-emerging-markets/|archive-date=23 September 2015|url-status=dead}} The three major global credit rating agencies – Standard and Poor's, Moody's Ratings, and Fitch Ratings – are headquartered or co–headquartered in New York City, with Fitch being co–headquartered in London.

File:At London 2024 019.jpg. ]]

File:Canary-wharf-one.jpg.]]

File:Paternoster Square.jpg in the City of London, the largest exchange in Europe by capitalisation.{{cite web|title=Top 10 Stock Exchanges in the world|url=http://www.world-stock-exchanges.net/top10.html|publisher=World Stock Exchanges|access-date=24 May 2015|date=2011|postscript=none}}; {{cite web|title=UK's financial services trade surplus biggest in the world, dwarfing its nearest rivals|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-s-financial-services-trade-surplus-biggest-in-the-world-dwarfing-its-nearest-rivals/|publisher=TheCityUK|access-date=5 June 2015|date=3 July 2014}}]]

• London. London maintains a leading position as a financial centre and maintains the largest trade surplus in financial services around the world.{{cite web|title=UK's financial services trade surplus biggest in the world, dwarfing its nearest rivals|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-s-financial-services-trade-surplus-biggest-in-the-world-dwarfing-its-nearest-rivals/|publisher=TheCityUK|access-date=5 June 2015|date=3 July 2014|postscript=none|archive-date=11 July 2014|archive-url=https://web.archive.org/web/20140711095621/http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-s-financial-services-trade-surplus-biggest-in-the-world-dwarfing-its-nearest-rivals/|url-status=dead}}; {{cite web|title=London's competitive place in the UK and global economies|url=http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/londons-competitive-place-uk-and-global-economies.aspx|publisher=City of London|author=Oxford Economics|access-date=24 May 2015|date=20 January 2011|archive-url=https://web.archive.org/web/20150427055149/http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/londons-competitive-place-uk-and-global-economies.aspx|archive-date=27 April 2015|url-status=dead}}{{cite news|title=London's Low Taxes Lure Foreign Companies as Banks Retrench|url=https://www.bloomberg.com/news/2013-10-17/london-luring-foreign-companies-with-low-taxes-as-banks-retrench.html|publisher=Bloomberg L.P.|access-date=22 December 2013|postscript=none}}; {{cite web|title=KPMG's Annual Tax Competitiveness Survey 2013|url=http://www.kpmg.com/uk/en/issuesandinsights/articlespublications/pages/tax-competitiveness-survey-2013.aspx|publisher=KPMG|access-date=22 December 2013}}{{cite news|title=London Is Eating New York's Lunch|url=https://www.nytimes.com/2012/03/04/magazine/how-london-surpassed-wall-street.html?_r=0|access-date=24 May 2015|work=The New York Times Magazine|date=29 February 2012}} However, like New York, it faces new competitors including fast-rising eastern financial centres such as Hong Kong and Shanghai. London is the largest centre for derivatives markets,{{cite web|title=Triennial Central Bank Survey: OTC interest rate derivatives turnover in April 2013|url=http://www.bis.org/publ/rpfx13ir.pdf|publisher=Bank for International Settlements|access-date=20 May 2015|page=11|date=September 2013}} foreign exchange markets,{{cite web|title=Triennial Central Bank Survey: Foreign exchange turnover in April 2013|url=http://www.bis.org/publ/rpfx13fx.pdf|publisher=Bank for International Settlements|access-date=23 May 2015|page=14|date=September 2013}} money markets,{{cite web|title=International money market instruments – all issuers By residence of issuer|url=http://www.bis.org/statistics/r_qa1503_hanx14a.pdf|publisher=Bank for International Settlements|access-date=23 May 2015|date=March 2015}} issuance of international debt securities,{{cite web|title=International debt securities – all issuers All maturities, by residence of issuer|url=http://www.bis.org/statistics/r_qa1503_hanx11a.pdf|publisher=Bank for International Settlements|access-date=23 May 2015|date=March 2015}} international insurance,{{cite web|title=Key Facts about the UK as an International Financial Centre report 2015|url=https://www.thecityuk.com/assets/2015/Reports-PDF/Key-Facts-about-international-financial-and-related-professional-services-2015.pdf|publisher=TheCityUK|access-date=9 October 2016|page=3|date=21 July 2015}}{{Dead link|date=December 2018 |bot=InternetArchiveBot |fix-attempted=yes }} trading in gold, silver and base metals through the London bullion market and London Metal Exchange,{{cite news|title=LBMA says banks back its plan to change London gold market|url=https://www.ft.com/content/b9805af6-653b-11e6-8310-ecf0bddad227|access-date=9 October 2016|work=Financial Times|date=18 August 2016|postscript=none}}; {{cite web|title=A guide to The London Bullion Market Association|url=http://www.lbma.org.uk/assets/market/gdl/LBMA%20Brochure%20Final%2020150501.pdf|publisher=London Bullion Market Association|access-date=9 October 2016|date=May 2015|postscript=none}}; {{cite web|title=London Metal Exchange|url=http://www.lme.com|publisher=The London Metal Exchange|access-date=9 October 2016}} international bank lending and Europe's share trading capital.{{rp|2}}{{cite web|title=External loans and deposits of banks|url=http://www.bis.org/statistics/r_qa1506_hanx3a.pdf|publisher=Bank for International Settlements|access-date=23 May 2015|date=April 2015}}{{Cite web |last=Dorrell |first=Chris |date=2024-06-19 |title=City overtakes Amsterdam to be Europe's share trading hub |url=https://www.cityam.com/london-continues-to-roar-back-as-city-overtakes-amsterdam-to-be-europes-share-trading-hub/ |access-date=2025-03-30 |website=City AM |language=en-GB}} London has the second largest concentration of hedge funds (847 according to one source).{{Cite web |title=Downloadable Hedge Fund Lists - Lists of Hedge Funds in Excel Format |url=https://hedgelists.com |access-date=2025-03-29 |website=Hedge Lists |language=en-US}} London benefits from its position between the Asia and U.S. time zones,{{cite web|title=London Wants to Tap Chinese Currency Market|url=https://dealbook.nytimes.com/2012/01/16/london-wants-to-tap-chinese-currency-market/?_r=0|publisher=The New York Times Deal Book|access-date=13 December 2014|date=16 January 2012}} and benefited from its location within the European Union,{{Cite web|url=http://www.europarl.europa.eu/RegData/etudes/BRIE/2016/587384/IPOL_BRI(2016)587384_EN.pdf|title=Brexit: the United Kingdom and EU financial services|date=9 December 2016|publisher=Economic Governance Support Unit of the European Parliament|access-date=2 March 2018}}{{rp|1}} although this ended in 2020 when the United Kingdom left the European Union following the Brexit referendum of 2016. As well as the London Stock Exchange, the London Clearing House is based in the city. Although post-Brexit London has faced challenges, London has defied predictions of having its European financial capital crown stripped to cities like Paris, Amsterdam, Frankfurt and even Dublin.

File:TokyoStockExchange1144.jpg, located in Nihonbashi-Kabutocho, Tokyo, Japan, is the largest stock exchange in Asia.]]

• Tokyo. One report suggests that Japanese authorities are working on plans to transform Tokyo but have met with mixed success, noting that "initial drafts suggest that Japan's economic specialists are having trouble figuring out the secret of the Western financial centres' success."{{cite news

|author= Martin Fackler

|title= Tokyo Seeking a Top Niche in Global Finance

|work= The New York Times: World Business

|date= 16 November 2007

|url= https://www.nytimes.com/2007/11/16/business/worldbusiness/16capital.html

|access-date= 15 January 2011

}} Efforts include more English-speaking restaurants and services and the building of many new office buildings in Tokyo, but more powerful stimuli such as lower taxes have been neglected and a relative aversion to finance remains prevalent in Japan. Tokyo emerged as a major financial centre in the 1980s as the Japanese economy became one of the largest in the world, but then declined due to the Lost Decades .{{rp|1}} As a financial centre, Tokyo has good links with New York City and London.{{cite book|author=Sassen, Saskia|title=The Global City: New York, London, Tokyo|year=2001|publisher=Princeton University Press|edition=2nd|author-link=Saskia Sassen}}{{cite web|title=Japan-U.S. Symposium|url=http://www.law.harvard.edu/programs/about/pifs/symposia/japan/|website=Harvard Law School, Program on International Financial Systems, Japan-U.S. Symposium|access-date=30 May 2015}}

{{See also|Conduit and Sink OFCs}}

These centres appear in all FSF–IMF lists of OFCs and, bar the Caribbean OFCs of the Cayman Islands, the British Virgin Islands, and Bermuda, represent all the major OFCs. Some also appear as RFCs in various lists, particularly Hong Kong, and Singapore. They also appear on most lists of major tax havens, and on lists of the largest Conduit and Sink OFCs in the world.

• Amsterdam. Amsterdam is well known for the size of its pension fund market. It is also a centre for banking and trading activities.{{cite web|title=The financial and business sector in the Amsterdam metropolitan area.|url=http://www.iamsterdam.com/~/media/PDF/FD%20Brochure.pdf|publisher=Amsterdam Business|access-date=23 May 2015|archive-url=https://web.archive.org/web/20150705003148/http://www.iamsterdam.com/~/media/PDF/FD%20Brochure.pdf|archive-date=5 July 2015|url-status=dead}} Amsterdam was a prominent financial centre in Europe in the 17th and 18th centuries and several of the innovations developed there were transported to London.{{rp|24}} In June 2017, a study published in Nature ranked the Netherlands as the world's largest Conduit OFC, a term use to describe the re-routing of fund flows to tax havens.{{cite news|url=https://www.theguardian.com/world/2017/jul/25/netherlands-and-uk-are-biggest-channels-for-corporate-tax-avoidance|title=Netherlands and UK are biggest channels for corporate tax avoidance|newspaper=The Guardian|date=25 July 2017}}{{cite web | url=http://www.dutchnews.nl/news/archives/2017/07/the-netherlands-is-worlds-biggest-conduit-to-offshore-tax-havens-research/ | title=The Netherlands is world's biggest conduit to offshore tax havens: research|publisher=Dutch News NL| date=24 July 2017}} Additionally, after the UK's departure from the European Union, Amsterdam became Europe's largest share trading centre but was quickly overtaken by London again.{{Cite web |last=Dorrell |first=Chris |date=2024-06-19 |title=City overtakes Amsterdam to be Europe's share trading hub |url=https://www.cityam.com/london-continues-to-roar-back-as-city-overtakes-amsterdam-to-be-europes-share-trading-hub/ |access-date=2025-03-29 |website=City AM |language=en-GB}}
• Dublin. Dublin (via its International Financial Services Centre, "IFSC"), is a specialised financial services centre with a focus on fund administration and domiciling, fund management, custodial activities and aircraft leasing.{{cite news|title=High-flying aviation industry one of Ireland's biggest successes|url=https://www.irishtimes.com/special-reports/aviation-finance/high-flying-aviation-industry-one-of-ireland-s-big-successes-1.3760055|newspaper=The Irish Times|date=24 January 2019}} It is the largest securitisation location in the EU-27,{{cite news|url=https://www.independent.ie/business/irish/ireland-is-top-eurozone-jurisdiction-for-secretive-spvs-36047198.html|title=Ireland is top Eurozone jurisdiction for SPVs|newspaper=Irish Independent|date=19 August 2017}}{{cite web|title=Ireland's IFSC (International Financial Services Centre)|url=http://www.financedublin.com/the_ifsc_story.php|publisher=Finance Dublin|access-date=23 May 2015}}{{cite web|title=Key Facts|url=http://www.ifscireland.ie/facts-figures|publisher=IFSC Ireland|access-date=23 May 2015|archive-date=16 May 2015|archive-url=https://web.archive.org/web/20150516142153/http://www.ifscireland.ie/facts-figures|url-status=dead}} and the second largest domicile for investment funds, particularly alternative investment funds, after Luxembourg. Many of the funds domiciled and managed in Dublin are at the instruction of investment managers in larger Asset Management jurisdictions such as London, Frankfurt, New York and Luxembourg.{{rp|5–6}} Dublin's advanced BEPS tax tools, for example the double Irish, the single malt, and the capital allowances for intangible assets ("CAIA") tools, have led the economist Gabriel Zucman to judge Ireland to be the largest corporate tax haven by virtue of its use as a conduit OFC.{{cite web|url=http://gabriel-zucman.eu/|title=The Missing Profits of Nations|page=31|author1=Gabriel Zucman|author2=Thomas Torslov|author3=Ludvig Wier|quote=Table 2: Shifted Profits: Country-by-Country Estimates (2015)|publisher=National Bureau of Economic Research, Working Papers|date=June 2018|author1-link=Gabriel Zucman}}{{cite news|url=https://www.irishtimes.com/business/economy/ireland-is-the-world-s-biggest-corporate-tax-haven-say-academics-1.3528401?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fireland-is-the-world-s-biggest-corporate-tax-haven-say-academics-1.3528401|title=Ireland is the world's biggest corporate 'tax haven', say academics|quote=Study claims State shelters more multinational profits than the entire Caribbean|newspaper=The Irish Times|date=13 June 2018}}{{cite news|url=https://www.wsj.com/articles/corporations-push-profits-into-tax-havens-as-countries-struggle-in-pursuit-study-says-1528634659|title=Zucman:Corporations Push Profits into Corporate Tax Havens as Countries Struggle in Pursuit, Gabrial Zucman Study Says|quote=Such profit shifting leads to a total annual revenue loss of $200 billion globally|newspaper=The Wall Street Journal|date=10 June 2018}}
• Hong Kong. As a financial centre, Hong Kong has strong links with London and New York City.{{rp|10–11}} It developed its financial services industry while a British territory and its present legal system, defined in Hong Kong Basic Law, is based on English law. In 1997, Hong Kong became a Special Administrative Region of the People's Republic of China, retaining its laws and a high degree of autonomy for at least 50 years after the transfer. Recently, this formula has been threatened by interference of the Chinese central government (see also Hong Kong national security law and 2019 Hong Kong extradition bill). Most of the world's 100 largest banks have a presence in the city.{{cite news

|author= (Xinhua)

|title= HK, Shenzhen promote financial industry in NY

|work= China Daily

|date= 2 June 2009 |url= http://www.chinadaily.com.cn/china/2009-06/02/content_7964085.htm

|access-date= 15 January 2011

}} Hong Kong is a leading location for initial public offerings, competing with New York City,{{cite news|title=Hong Kong's Likely Return as Top IPO Market Not All Rosy|url=https://www.wsj.com/articles/hong-kongs-likely-return-as-top-ipo-market-not-all-rosy-1466738959|access-date=9 October 2016|work=The Wall Street Journal|date=23 June 2016}} and also for merger and acquisition activity.{{cite news|title=China to Wall Street's Deal Makers: We Don't Need You|url=https://www.wsj.com/articles/china-to-wall-streets-deal-makers-we-dont-need-you-1456050602|access-date=9 October 2016|work=The Wall Street Journal|date=21 February 2016}}

• Luxembourg. Luxembourg is a specialised financial services centre that is the largest location for investment fund domiciliation in Europe, and second in the world after the United States. Many of the funds domiciled in Luxembourg are managed in London.{{rp|5–6}} Luxembourg is the leading private banking centre in the Eurozone and the largest captive reinsurance centre in Europe. 143 banks from 28 countries are established in Luxembourg.{{cite web|title=Number of banks per country of origin|url=http://www.cssf.lu/en/supervision/banks/statistics/monthly-statistics/number-of-banks-per-country-of-origin/|publisher=Commission de Surveillance du Secteur Financier|access-date=25 May 2015|date=30 April 2015|archive-date=26 May 2015|archive-url=https://web.archive.org/web/20150526023244/http://www.cssf.lu/en/supervision/banks/statistics/monthly-statistics/number-of-banks-per-country-of-origin/|url-status=dead}} The country is also the third largest renminbi centre in the world by numbers, in certain activities such as deposits, loans, bond listing and investment funds.{{cite web|url=http://www.investmenteurope.net/investment-europe/news/2348962/luxembourg-third-largest-rmb-centre-worldwide|title=Luxembourg third largest RMB centre worldwide|date=9 July 2014|publisher=Investment Europe|access-date=25 May 2015}} Three of the largest Chinese banks have their European hub in Luxembourg (ICBC, Bank of China, China Construction Bank).
• Singapore. With its strong links with London,{{cite news|title=Singapore may renegotiate EU trade deal after Brexit removes British markets|url=http://www.independent.ie/business/brexit/singapore-may-renegotiate-eu-trade-deal-after-brexit-removes-british-markets-36052157.html|access-date=21 August 2017|work=The Independent|date=21 August 2017}} Singapore has developed into the Asia region's largest centre for foreign exchange and commodity trading, as well as a growing wealth management hub.{{cite news|title=Singapore jostles with Hong Kong for financial crown|url=http://www.ft.com/cms/s/0/b18372a6-5297-11e4-a236-00144feab7de.html#axzz3bAq4UPNT|access-date=25 May 2015|work=The Financial Times|date=16 October 2014}} Other than Tokyo, it is one of the main centres for fixed income trading in Asia. However, the market capitalisation of its stock exchange has been falling since 2014 and several major companies plan to delist.{{cite news|title=Brand Singapore Takes a Beating|url=https://www.wsj.com/articles/singapore-exchange-suffers-as-listing-loses-luster-globally-1469448789|access-date=9 October 2016|work=The Wall Street Journal|date=25 July 2016}}
• Zurich. Zurich is a significant centre for banking, asset management including provision of alternative investment products, and insurance.{{cite web|title=Portrait of the Zurich financial centre|url=http://www.finanzplatz-zuerich.ch/Finanzplatz/Porträts/tabid/143/language/en-US/Default.aspx|publisher=Finanzplatz Zurich|access-date=24 May 2015|archive-url=https://web.archive.org/web/20150508023354/http://www.finanzplatz-zuerich.ch/Finanzplatz/Portr%C3%A4ts/tabid/143/language/en-US/Default.aspx|archive-date=8 May 2015|url-status=dead}}{{cite web|title=The Zurich banking centre|url=http://www.sz.ch/documents/zurich_banking_centre.pdf|publisher=Zurich Banking Association|access-date=24 May 2015|archive-url=https://web.archive.org/web/20150525101314/http://www.sz.ch/documents/zurich_banking_centre.pdf|archive-date=25 May 2015|url-status=dead}}{{cite web|title=Financial Services|url=http://www.awa.zh.ch/internet/volkswirtschaftsdirektion/awa/en/standortfoerderung/cluster/finanzdienstleistungen.html|publisher=Canton of Zurich|access-date=24 May 2015}} Since Switzerland is not a member of the European Union, Zurich is not directly subject to EU regulation.

In some lists, RFCs such as Paris, Frankfurt, Chicago, and Shanghai appear as IFCs, however, they do not appear in all lists. They are certainly major RFCs.

• Chicago. The Illinois city has the "world's largest [exchange-traded] derivatives market" since the Chicago Mercantile Exchange and the Chicago Board of Trade merged in 2007, under the CME Group.{{cite news

|author= Heather Timmons

|title= New York Isn't the World's Undisputed Financial Capital

|work= The New York Times

|date= 27 October 2006

|url= https://www.nytimes.com/2006/10/27/business/worldbusiness/27london.html

|access-date= 15 January 2011

}}

• Dubai. The second largest emirate in the United Arab Emirates is a growing centre for finance in the Middle East, including for Islamic finance. Its emergence as a financial centre is relatively recent, although commercial banking activity in the UAE became established in the second half of the 20th century (the first commercial bank in Dubai was British Bank of the Middle East in 1946, and the first domestic commercial bank was the National Bank of Dubai established in 1963).{{cite web|title=Dubai as an international financial centre|url=http://www.cassknowledge.com/sites/default/files/article-attachments/Dubai-international-financial-centre_0.pdf|publisher=Cass Business School|access-date=2 June 2015|date=September 2013}}

File:Frankfurt Am Main-Neue Boerse von Suedosten-20120222.jpg building, which dates back to 1879.{{cite web|title=History of the Frankfurt Stock Exchange – Patricians, princes and commodity markets: 18th – 19th century|url=https://deutsche-boerse.com/dbg/dispatch/en/kir/dbg_nav/about_us/20_FWB_Frankfurt_Stock_Exchange/70_History_of_the_FWB?horizontal=page2_DB_SP_FWB-Historie18-19|publisher=Deutsche Börse|access-date=11 July 2015}}]]

• Frankfurt. Frankfurt attracts many foreign banks which maintain offices in the city. It is the seat of {{lang|de|Deutsche Börse|italic=no}}, one of the leading stock exchanges and derivatives markets operators, and the European Central Bank, which sets the monetary policy for the single European currency, the euro; in addition, in 2014 the European Central Bank became the central institution of European Banking Supervision for the 18 countries which form the Eurozone. It is also the seat of Deutsche Bundesbank, the German central bank,{{cite web|title=Frankfurt as a Financial Centre|url=http://www.ft.com/reports/frankfurt-financial-centre|work=The Financial Times|access-date=25 May 2015}} as well as of EIOPA, the EU's supervisory authority for insurances and occupational pension systems.{{cite web|url = https://eiopa.europa.eu/Contacts|title = Contacts|website = EIOPA: European Insurance and Occupational Pensions Authority|access-date = 17 November 2015|archive-date = 18 November 2015|archive-url = https://web.archive.org/web/20151118054054/https://eiopa.europa.eu/Contacts|url-status = dead}}

:Frankfurt has been the financial centre of Germany since the second half of the 20th century as it was before the mid-19th century. Berlin held the position during the intervening period, focusing on lending to European countries while London focused on lending to the Americas and Asia.{{cite web|author1=Julia Bersch, Ludwig-Maximilians-University Munich and Munich Graduate School of Economics, Graciela L. Kaminsky|title=Financial globalization in the 19th century: Germany as a financial center|url=http://home.gwu.edu/~graciela/HOME-PAGE/RESEARCH-WORK/WORKING-PAPERS/Germany-center.pdf|date=September 2008|pages=1, 4}}{{cite book|last1=Jeske|first1=Carl-Ludwig Holtfrerich.|last2=Metzler|first2=Friedrich von|title=Frankfurt as a financial centre : from medieval trade fair to European banking centre|date=1999|publisher=Beck|location=München|isbn=9783406456718|url=https://books.google.com/books?id=UAY9ugffPXQC}}

File:Bolsa de Madrid edited.jpg. Madrid's stock exchange is the world's second-largest in number of listed companies.{{cite web|url=https://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Documents/research-2011/The%20value%20of%20europes%20international%20financial%20centres%20to%20the%20EU%20economy.pdf|title=Value of EU's Financial Centres|author=Europe Economics|publisher=City of London Corporation and TheCityUK|date=July 2011|access-date=11 July 2016|archive-url=https://web.archive.org/web/20160818121711/https://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Documents/research-2011/The%20value%20of%20europes%20international%20financial%20centres%20to%20the%20EU%20economy.pdf|archive-date=18 August 2016|url-status=dead}}]]

• Madrid. Madrid is the headquarters to the Spanish company Bolsas y Mercados Españoles, which owns the four stock exchanges in Spain, the largest being the Bolsa de Madrid. Trading of equities, derivatives and fixed income securities are linked through the Madrid-based electronic Spanish Stock Market Interconnection System (SIBE), handling more than 90% of all financial transactions. Madrid ranks fourth in European equities market capitalisation, and Madrid's stock exchange is second in terms of number of listed companies, just behind New York Stock Exchange (NYSE plus NASDAQ). As a financial centre, Madrid has extensive links with Latin America and acts as a gateway for many Latin American financial firms to access the EU banking and financial markets.{{cite web|title=The value of Europe's international financial centres to the EU economy|url=http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/value-europes-international-financial-centres-to-eu.aspx|date=6 July 2011|access-date=23 May 2015|publisher=City of London and TheCityUK|author=Europe Economics|archive-url=https://web.archive.org/web/20150525100706/http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/value-europes-international-financial-centres-to-eu.aspx|archive-date=25 May 2015|url-status=dead}}{{rp|6–7}}

File:Palais Mezzanotte - Milan (IT25) - 2022-09-03 - 3.jpg, Palazzo Mezzanotte.]]

• Milan. Italy's main centre of banking and finance. It hosts the Borsa Italiana stock exchange, one of the larger stock exchanges in Europe, which is now part of Euronext.{{cite book|editor1-last=Sako|editor1-first=Musterd|editor2-last=Murie|editor2-first=Alan|title=Making Competitive Cities|date=2011|publisher=John Wiley & Sons|isbn=978-1444390421|url=https://books.google.com/books?id=R-QPyvfjWdYC&pg=PA245}}{{rp|245}}
• Paris. Alongside equity trading on the Paris Stock Exchange, there is futures and options trading, insurance, corporate banking and asset management taking place in Paris.{{cite web|title=Paris, the Euro Area's leading financial centre|url=http://www.diplomatie.gouv.fr/en/french-foreign-policy-1/economic-diplomacy/facts-about-france/one-figure-one-fact/article/1-paris-the-euro-area-s-leading|publisher=French Ministry of Foreign Affairs and International Development|access-date=24 May 2015}} The city is home to the Banque de France and the European Securities and Markets Authority. Paris has been a major financial centre since the 19th century.{{rp|1}} The European Banking Authority also moved to Paris from London in March 2019 following Brexit.{{Cite web|url=http://www.consilium.europa.eu/en/policies/relocation-london-agencies-brexit/|title=Relocation of the UK-based EU agencies – Consilium|website=www.consilium.europa.eu|language=en|access-date=16 April 2018}}
• Seoul. South Korea's capital has developed significantly as a financial centre since the late-2000s recession. In 2009, Seoul ranked 53rd among global financial centres; by 2012, Seoul had risen to number 9.{{cite web|url=http://www.koreasociety.org/corporate/seouls_rise_as_a_global_financial_center.html|title=Seoul's Rise as a Global Financial Center|date=21 September 2012|publisher=The Korea Society|access-date=25 May 2015|archive-date=10 December 2017|archive-url=https://web.archive.org/web/20171210151839/http://www.koreasociety.org/corporate/seouls_rise_as_a_global_financial_center.html|url-status=dead}} Seoul has continued to build office space with the completion of the International Financial Center Seoul in 2013. It ranked 7th in the 2015 Global Financial Centres Index, recording the highest growth in rating among the top ten cities.

File:Shanghai Stock Exchange Building at Pudong.JPG building at Pudong.]]

• Shanghai. Official efforts have been directed to making Pudong a financial leader by 2010.{{cite news

|author= Seth Faison

|title= Hong Kong Continues to Eclipse An Economic Rebirth in Shanghai

|work= The New York Times: Business Day

|date= 13 December 1996

|url= https://query.nytimes.com/gst/fullpage.html?res=9B02E6DC143EF930A25751C1A960958260

|access-date= 15 January 2011

}} Efforts during the 1990s were mixed, but in the early 21st century, Shanghai gained ground. Factors such as a "protective banking sector" and a "highly restricted capital market" have held the city back, according to a 2009 opinion piece in China Daily.{{cite news

|author= Hong Liang

|title= Software for a financial center here

|work= China Daily

|date= 4 May 2009

|url= http://www.chinadaily.com.cn/opinion/2009-05/04/content_7740527.htm

|access-date= 15 January 2011

}} Shanghai has done well in terms of market capitalisation but it needs to "attract an army of money managers, lawyers, accountants, actuaries, brokers and other professionals, Chinese and foreign" to enable it to compete with New York and London.{{cite news

|author= Dealbook

|title= Shanghai Opens Doors to Financial World

|work= The New York Times

|date= 2 March 2010

|url= https://dealbook.nytimes.com/2010/03/02/shanghai-opens-doors-to-financial-world/

|access-date= 15 January 2011

}} China is generating tremendous new capital, which makes it easier to stage initial public offerings of state-owned companies in places like Shanghai.{{cite news

|author= Daniel Gross

|title= The Capital of Capital No More?

|work= The New York Times: Magazine

|date= 14 October 2007

|url= https://www.nytimes.com/2007/10/14/magazine/14wallstreet-t.html

|access-date= 15 January 2011

}}

File:Skyline pic Mumbai.jpg

File:SydneyCBDfromTower.jpg

• Sydney. Australia's most populous city is a financial and business services hub not only for Australia but for the Asia-Pacific region. Sydney competes quite closely with other Asia Pacific hubs, however it concentrates a greater portion of Australian-based business in terms of clients and services. Sydney is home to two of Australia's four largest banks, the Commonwealth Bank of Australia and Westpac Banking Corporation, both headquartered in the Sydney CBD. Sydney is also home to 12 of the top 15 asset managers in Australia. Melbourne, on the other hand, tends to concentrate more of the Australian superannuation funds (pension funds). Sydney is using the large Barangaroo development project on its harbour to further position itself as an Asian Pacific hub.{{cite news|title=Sydney seeks to become Asia finance hub with Barangaroo project|url=http://www.ft.com/cms/s/0/3be0beb4-cdcb-11e4-8760-00144feab7de.html#axzz4E6MAlTCm|work=Financial Times|date=22 March 2015}} Sydney is also home to the Australian Securities Exchange and an array of brokerage banks which are either headquartered or regionally based in Sydney, including Australia's largest investment bank Macquarie Group.{{cite news|title=Rethinking Sydney's role as an international financial centre|url=http://www.businessspectator.com.au/article/2014/11/25/china/rethinking-sydneys-role-international-financial-centre|access-date=25 May 2015|work=China Spectator|date=25 November 2014}}{{cite news|title=Sydney losing battle to become a leading financial centre|url=http://www.smh.com.au/business/the-economy/sydney-losing-battle-to-become-a-leading-financial-centre-20140925-10lscq.html|access-date=25 May 2015|work=The Sydney Morning Herald|date=25 September 2014}}
• Toronto. The city is a leading market for Canada's largest financial institutions and large insurance companies. It has also become one of the fastest growing financial centres following the late-2000s recession, helped by the stability of the Canadian banking system. Most of the financial industry is concentrated along Bay Street, where the Toronto Stock Exchange is also located.{{cite web|title=Financial Services|url=http://www.investtoronto.ca/Business-Toronto/Key-Business-Sectors/Financial-Services.aspx|publisher=Invest Toronto|access-date=25 May 2015|archive-date=25 May 2015|archive-url=https://web.archive.org/web/20150525223602/http://www.investtoronto.ca/Business-Toronto/Key-Business-Sectors/Financial-Services.aspx|url-status=dead}}
• Others. Mumbai is an emerging financial centre, which also provides international support services to London and other financial centres.{{cite web|title=Mumbai – An International Financial Centre|url=http://www.iimb.ernet.in/publications/review/march2008/mumbai-financial-centre|publisher=Indian Institute of Management Bangalore|access-date=24 May 2015|date=March 2008}}{{cite web|title=Making Mumbai an International Financial Centre|url=http://www.finmin.nic.in/mifc/mifcreport.pdf|publisher=Ministry of Finance, Government of India|access-date=24 May 2015|date=2007}}{{cite news|title=Mumbai's dream of becoming an international financial centre may soon be a reality|url=http://economictimes.indiatimes.com/news/politics-and-nation/mumbais-dream-of-becoming-an-international-financial-centre-may-soon-be-a-reality/articleshow/45017353.cms|access-date=24 May 2015|work=The Economic Times|date=3 November 2014}} Cities such as São Paulo, Mexico City and Johannesburg and other "would-be hubs" lack liquidity and the "skills base", according to one source. Financial industries in countries and regions such as the Indian subcontinent and Malaysia require not only well-trained people but the "whole institutional infrastructure of laws, regulations, contracts, trust and disclosure" which takes time to happen.

{{See also|History of banking}}Primitive financial centres evolved in the 11th century in the Kingdom of England at the annual fair of St. Giles and in the Kingdom of Germany at the Frankfurt autumn fair, then developed in medieval France during the Champaign Fairs.{{Cite book|url=https://books.google.com/books?id=Yor4DAAAQBAJ|title=Finance Masters: A Brief History of International Financial Centers in the Last Millennium|last=Coispeau|first=Olivier|date=10 August 2016|publisher=World Scientific|isbn=9789813108844|language=en}}

{{See also|Economic history of Italy|Economic history of Venice|History of Genoa}}

The first real international financial centre was the city state of Venice which slowly emerged from the 9th century to its peak in the 14th century. Tradable bonds as a commonly used type of security, were invented by the Italian city-states (such as Venice and Genoa) of the late medieval and early Renaissance periods while Florence can be said to be the birthplace of double-entry bookkeeping from the publication and proliferation of the work of Luca Pacioli.

{{See also|Economic history of Belgium|History of Bruges|History of Antwerp}}

{{Hatnote|For the origin and history of the bourse in general (not to be confused with the concept of the stock exchange and stock market), see exchange (organized market)}}

In the sixteenth century, the overall economic supremacy of the Italian city-states gradually waned, and the centre of financial activities in Europe shifted to the Low Countries, first to Bruges, and later to Antwerp and Amsterdam which acted as Entrepôt cities. They also became important centres of financial innovation, capital accumulation and investment.{{citation needed|date=May 2020}} By the early 1800s, London replaced Amsterdam as the world's leading financial centre.

{{See also|Global financial system#History of international financial architecture}}

London and Paris were the world's only prominent financial centres throughout most of the 19th century.{{rp|1}} After 1870, Berlin and New York grew to become major financial centres mainly serving their national economies. An array of smaller international financial centres found market niches, such as Amsterdam, Brussels, Zurich, and Geneva. London was the leading international financial centre in the four decades before World War I.{{rp|74–75}}{{rp|12–15}} Since then, New York and London have developed leading positions in different activities and some non-Western financial centres have grown in prominence, notably Tokyo, Hong Kong, Singapore and Shanghai.

{{See also|Economic history of the United Kingdom|City of London|History of London|Economy of London}}

London has been a leading international financial centre since the 19th century, acting as a centre of lending and investment around the world.{{Cite book | title = Capitals of Capital: A History of International Financial Centres, 1780–2005 | author = Cassis, Youssef | year = 2006 | publisher = Cambridge University Press | location = Cambridge, UK | isbn = 978-0-511-33522-8 | url = https://books.google.com/books?id=geEzo9s9QbUC&pg=PA75}}{{rp|74–75}}{{cite book|last1=Michie|first1=Ranald|title=The Global Securities Market: A History|date=2006|publisher=OUP Oxford|isbn=978-0191608599|url=https://books.google.com/books?id=fPugmGG-ircC&pg=PT149}}{{rp|149}} The Bank of England, founded as a private bank in 1694, took on the role of a central bank with the Bank Charter Act 1844.{{Cite web |title=The Bank of England: History and Functions |url=https://www.bankofengland.co.uk/-/media/boe/files/archive/publications/history-and-functions.pdf |page=9 |quote=These continued with little substantial change until the second quarter of the 19th century, when new ideas on the rights and duties of a central bank were expressed in laws that opened the ordinary business of banking to free competition, but concentrated exclusively in the Bank the note issue of England and Wales.}}{{Cite web |title=History |url=https://www.bankofengland.co.uk/about/history |access-date=2025-03-29 |website=www.bankofengland.co.uk |language=en |quote=The Bank Charter Act of 1844Opens in a new window gave the Bank of England a range of new powers and formalised the issuance of banknotes in the UK. This Act of Parliament placed restrictions on any banks, companies or persons in England and Wales that issued their own banknotes, and stopped any new banks from starting to issue notes across the UK.}} English contract law was adopted widely for international finance, with legal services provided in London.{{cite web|title=UK leading the way as an international centre for legal services and dispute resolution|url=http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-leading-the-way-as-an-international-centre-for-legal-services-and-dispute-resolution/|publisher=TheCityUK|access-date=5 June 2015|date=30 January 2014|quote=English law remains one of our most significant exports and continues to ensure the UK plays a leading role in global commerce|postscript=none|archive-date=11 July 2015|archive-url=https://web.archive.org/web/20150711143535/http://www.thecityuk.com/media/latest-news-from-thecityuk/uk-leading-the-way-as-an-international-centre-for-legal-services-and-dispute-resolution/|url-status=dead}}; {{cite web|title=English Common Law is the most widespread legal system in the world|url=http://www.sweetandmaxwell.co.uk/about-us/press-releases/061108.pdf|publisher=Sweet & Maxwell|access-date=16 December 2013|date=November 2008}} Financial institutions located there provided services internationally such as Lloyd's of London, founded in 1686, for insurance and the Baltic Exchange, founded in 1744, for shipping.{{cite book|last1=Clark|first1=David|title=Urban world/global city|date=2003|publisher=Routledge|isbn=978-0415320979|pages=174–176|url=https://books.google.com/books?id=J21sBa6n46gC&pg=PA174|postscript=none}}; {{cite book|last1=Shubik|first1=Martin|title=The theory of money and financial institutions|date=1999|publisher=MIT Press|isbn=978-0262693110|page=8|url=https://books.google.com/books?id=m9BWUe9xveQC&pg=PA8|postscript=none}}; {{cite web|title=The value of Europe's international financial centres to the EU economy|url=http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/value-europes-international-financial-centres-to-eu.aspx|date=6 July 2011|access-date=23 May 2015|publisher=City of London and TheCityUK|author=Europe Economics|page=6|archive-url=https://web.archive.org/web/20150525100706/http://www.cityoflondon.gov.uk/business/economic-research-and-information/research-publications/Pages/value-europes-international-financial-centres-to-eu.aspx|archive-date=25 May 2015|url-status=dead}} During the 20th century London played an important role in the development of new financial products such as the Eurodollar and Eurobonds in the 1960s, international asset management and international equities trading in the 1980s, and derivatives in the 1990s.{{rp|13}}{{cite news|last=Roberts|first=Richard|title=The City: A Guide to London's Global Financial Centre |year = 2008 |newspaper=The Economist|url=https://books.google.com/books?id=J0vl6CltQjEC&q=the%20city%20richard%20roberts&pg=PA2|isbn=9781861978585}}{{rp|6,12–13,88–9}}{{cite web|title=The City of London as a Global Financial Centre: An historical and comparative perspective|first=Ranald|last = Michie|date=July 2012|url=http://www.dur.ac.uk/resources/ihrr/tippingpoints/CityofLondonasaGlobalFinancialCentre-TPAnnualConference2012-RanaldMichie.ppt|archive-url=https://web.archive.org/web/20150707051802/http://www.dur.ac.uk/resources/ihrr/tippingpoints/CityofLondonasaGlobalFinancialCentre-TPAnnualConference2012-RanaldMichie.ppt|url-status=dead|archive-date=7 July 2015}} Long standing as the world's largest currency trading hub, today London accounts for over a third of global forex trading.{{Cite news |date=27 October 2022 |title=London Is Still World's Biggest FX-Trading Hub But Grip Slipping |url=https://www.currencytransfer.com/blog/expert-analysis/city-of-london-biggest-hub-for-currency-trading |work=Bloomberg}}{{Cite web |title=London trading session |url=https://www.forex.com/en/glossary/london-session |website=Forex}}{{Cite web |last= |first= |last2= |date=2023-07-03 |title=Why the City of London is the Biggest Hub for Currency Trading |url=https://www.currencytransfer.com/blog/expert-analysis/city-of-london-biggest-hub-for-currency-trading |access-date=2025-04-06 |website=CurrencyTransfer |language=en-US}}

{{See also|Economic history of the United States|Wall Street|Financial District, Manhattan|History of New York City|Economy of New York City}}

The Federal Reserve System was created in 1913 by the Federal Reserve Act after a series of financial crises, particularly the panic of 1907, led to the desire for central control of the monetary system.{{Cite web |title=History and Purpose of the Federal Reserve: In Plain English |url=https://www.stlouisfed.org/in-plain-english/history-and-purpose-of-the-fed |access-date=2025-03-29 |website=www.stlouisfed.org |language=en}} Since the middle of the 20th century, New York City, represented by Wall Street in Manhattan's Financial District, has been described as a leading financial centre.{{rp|1}}{{rp|25}}{{rp|4–5}} Over the past few decades, with the rise of a multipolar world with new regional powers and global capitalism, numerous financial centres have challenged Wall Street, particularly London,{{Cite web |last=Norman |first=Samuel |date=2025-03-20 |title=London closes in on New York as top financial hub but risks remain |url=https://www.cityam.com/london-nears-top-financial-hub-but-competitiveness-concerns-raised/ |access-date=2025-03-29 |website=City AM |language=en-GB}} and several in Asia, which some analysts believe will be the focus of new worldwide growth.{{cite web|url=http://www.nyc.gov/html/om/pdf/ny_report_final.pdf|title=Sustaining New York's and the US' Global Financial Services Leadership|publisher=City of New York|author=McKinsey & Company and the New York City Economic Development Corporation|access-date=2 May 2015|date=2007}}{{rp|39–49}}{{cite news|title=Backgrounder: The Shifting Capital of Capital|url=https://www.nytimes.com/cfr/world/slot1_20070712.html|access-date=25 May 2015|work=The New York Times|date=12 July 2007}} In 2018, New York was described as extending its lead as the world's centre of finance due to the value of domestic and international financial activity like managing assets and issuing equity, which underscores the position of New York as the world's leading financial centre.{{cite web|url=https://www.reuters.com/article/us-survey-markets/united-states-top-britain-second-in-financial-activity-think-tank-idUSKCN1LK2TM|title=United States top, Britain second in financial activity: think-tank |author=Huw Jones|publisher=Thomson Reuters|date=4 September 2018|access-date=5 September 2018|quote=Think-tank New Financial’s study, which focuses on the "raw" value of actual domestic and international financial activity like managing assets and issuing equity, underscored the overall dominance of New York as the world’s top financial center.}} A recent source has shown London narrowing the gap between the two cities.{{Cite news |title=London gains ground on New York in Z/Yen global financial hub survey |url=https://www.reuters.com/business/finance/london-gains-ground-new-york-zyen-global-financial-hub-survey-2025-03-20/ |archive-url=http://web.archive.org/web/20250322202825/https://www.reuters.com/business/finance/london-gains-ground-new-york-zyen-global-financial-hub-survey-2025-03-20/ |archive-date=2025-03-22 |access-date=2025-03-29 |work=Reuters |language=en-US}}

{{See also|Japanese economic miracle|Four Asian Tigers|Chinese economic reform|Conduit and Sink OFCs}}

File:Bombay Stock Exchange 3.jpg

In Asia, Tokyo emerged as a major financial centre in the 1980s as the Japanese economy became one of the largest in the world.{{rp|1}} Hong Kong and Singapore developed soon after leveraging their links with London and Britain.{{rp|10–11}} In the 21st century, other centres have grown including Sydney, Seoul, Shanghai and Astana. Astana International Financial Centre has become the fastest growing financial hub in Central Asia. Dubai has become a centre for finance in the Middle East, including for Islamic finance. The rapid rise of India has enabled Mumbai to become an emerging financial centre. India is also making an International Financial Centre GIFT City from scratch. GIFT city is now functional and has already won the crown of fastest emerging International Finance Centre of South Asia. Linked to the rise of these new IFCs, has seen the rise of "partner OFCs" (offshore tax-havens to which funds are routed), such as Taiwan (a major Sink OFC for Asia, and 7th largest global Sink OFC), Mauritius (a major Sink OFC for South Asia, especially India, and Africa, and the 9th largest global Sink OFC).

The private nationwide financial system in China was first developed by the Shanxi merchants, with the creation of so-called "draft banks". The first draft bank Rishengchang was created in 1823 in Pingyao. Some large draft banks had branches in Russia, Mongolia and Japan to facilitate the international trade. Throughout the nineteenth century, the central Shanxi region became the de facto financial centres of Qing China. With the fall of Qing Dynasty, the financial centres gradually shifted to Shanghai, mainly due to its geographical location at the estuary of the Yangtze River and to the control of customs in China. After the establishment of People's Republic of China, the financial centres in China today are Beijing, Shanghai, and Shenzhen.

• Global city
• Corporate tax haven
• Financial capital
• Financial Development Index
• Geography of finance
• Global financial system
• Nylonkong
• Conduit and Sink OFCs
• Financial district
• Alpha city

{{Notelist}}

{{Reflist|group=note}}

{{Reflist|30em}}

• [http://www.thebanker.com/Banker-Data/International-Financial-Centres International Financial Centres] – news articles from The Banker magazine.
• [http://www.financialcentresinternational.com Financial Centres International] – a forum on developments in international financial services centres.
• [https://web.archive.org/web/20150510110340/http://www.longfinance.net/programmes/financial-centre-futures.html Financial Centre Futures] – research on global financial centres from the Z/Yen Group.

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Category:International finance

Category:Offshore finance

Category:Foreign exchange market