A financial centre is a global city that is home to a large number of internationally significant banks, businesses, and stock exchanges.
Financial centres have existed since antiquity, from the legendary entrepôts of Babylon, Samarkand, Constantinople, Marrakech or Timbuktu through to London and New York City vying for today’s top spot.
The Global Financial Centres Index (GFCI) is a ranking of the competitiveness of financial centres based on over 26,000 financial centre across the globe.
Back in March 2012, in world terms Edinburgh was Scotland’s most important financial centre and ranked ahead of Qatar, Oslo, Glasgow, Dublin, Abu Dhabi, Brussels, Milan, Madrid and Moscow in the Global Financial Centres Index (GFCI).
The Scottish capital is also well known as one of the world’s top fund management hubs and a major European centre for asset servicing.
What a difference a year makes.
This years GFCI numbers are in and it’s good economic news for Glasgow as despite a global fall of 11 places to 50 – but it still overtook the Capital after Edinburgh tumbled 17 places to 54. Why is this such great news for Glasgoew and its citizens?
As Professor Michael Mainelli so clearly explains
Financial centres funnel investment toward innovation and growth. Vibrant, competitive financial centres give cities economic advantages in information, knowledge and access to capital. A strong financial centre, whether domestic, niche, regional, international or global, connects the wider economy to the global financial community. Cities that are part of the global financial network gain from global trade and growth. Inward and outward investment opportunities increase the wealth of cities that have financial centres and the wealth of their citizens.
Both Edinburgh’s and Glasgow’s fall was attributed to the turmoil in the Scottish banking centre, but – despite both cities falling down the latest ranking of the world’s economic hotspots, Glasgow has come out on top.
Glasgow has for now usurped Edinburgh’s position as Scotland’s most important financial center and is now ranked as the second most important financial centre in the UK, behind London. If you are interested to see what all the fuss is about and learn more about what makes a successful Global Financial Centre and why a city’s ranking is so important to the population, check out this this link
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