Half a year ago, the mood was sombre in Zurich after the city dropped out of the top ten in the index of global financial centers. Now, the tide has turned. And this has a lot to do with Donald Trump.
Zurich, Switzerland’s banking hub, moved up two places to reach 9th in the Global Financial Centres Index (GFCI). The list of cities was released today, for the first time in its new, half-yearly format.
The three U.S. cities of San Francisco, Boston and Chicago also dropped out of the top ten, which may have something to do with the election of Donald Trump as president of the U.S. and the uncertainties that were created for business. New York, which remained in No. 2 behind London, also had a substantially lower score than in the most recent ranking (see table below).
Zurich has regained some of its allure as a safe haven and the concern about an ever-tightening regulatory framework seems to have evaporated. Switzerland’s biggest city has also been able to score as a fintech center, helping it move back into the top ten. The city also has a wealth of experts from segments such as banking, the hedge fund industry, insurance and re-insurance.
Frankfurt's Surge
Zurich is Europe’s second-most important financial market, behind London, but ahead of Frankfurt (see European list below). Interestingly, Brexit hasn’t yet dented London’s measures of importance to a greater degree, even as most observer believe that Frankfurt will profit most from the outfall of the decision to leave the European Union. In the global list, Frankfurt gained 12 places to reach 11th – within half a year.
Geneva, Switzerland’s other major banking hub, also gained, moving up to 15th from 20th place globally. It is Europe’s fifth-most important financial center, according to the index. Geneva presumably had similar attributes that convinced analysts about its attraction.
Asian Attractions
Apart from the success of Switzerland’s financial centers, the ascent of Asian markets was most notable in the readings published. Shanghai and Beijing moved up to 6th and 10th positions respectively, from 13th and 16th half a year ago.
