With the rapid expansion and internationalization of the financial industry, competition between cities has intensified, and the importance of implementing measures to maintain or enhance their status as financial centers has grown significantly. Therefore, in the Global Power City Index - Financial Centers (GPCI-Financial Centers), we evaluate the competitiveness of cities as international financial centers from a multifaceted perspective by adding “Finance” function to the six functions of the Global Power City Index (Economy, Research and Development, Cultural Interaction, Livability, Environment, and Accessibility). This allows us to uncover the characteristics, strengths, and weaknesses of each city as a financial center within the global financial system and rank them. We hope that GPCI-Financial Centers will be utilized as an important tool by professionals in the financial industry, policymakers, and investors.
In the Finance function, New York secured the top position, followed by London in second place, creating a significant gap with cities ranked below them. New York received high praise across all indicators, including “Financial Instruments Markets,” “Financial Intermediaries,” “Foreign Exchange and Interest Rate Markets,” and “Highly-Skilled Personnel.” It claimed the first position in four specific indicators: Stock Market Capitalization, Stock Market Trading Value, World's Top Asset Managers, and International Law Firm Offices.
In London, it is evident that it has secured the top position in both the Foreign Exchange Turnover and Interest Rate Derivatives Turnover indicators in the "Foreign Exchange and Interest Rate Markets", showcasing a significant strength. Furthermore, it achieved second place even in the category of the ”Highly-Skilled Personnel,” earning recognition in the financial sector, following New York.
Tokyo, in third place, boasts strong “Financial Intermediaries”, particularly securing the top position in two indicators: "World's Top Insurance Company Headquarters" and "World's Top Pension Funds." To narrow the gap with the top two cities in the financial sector, it is necessary to enhance evaluations beyond the ”Financial Intermediaries.”
If you have any questions about the GPCI-2023 Financial Centers, please contact iusall@mori-m-foundation.or.jp