Dublin’s status as financial hub improves in global index

Dublin's standing as a global financial hub enjoyed something of a bounce in the latest Global Financial Centres Index (GFCI). The city jumped 18 places to rank 52nd in the survey of 82 financial centres across the globe, putting it on a par with the likes of Mumbai and Bangkok.

However, the improvement only partially reverses Dublin’s dramatic decline in the wake of the financial crisis. Prior to 2010 it was always ranked within the top 30. In 2009 it ranked as high as 10th alongside cities like London, New York and Zurich.

While the crash cut a swathe through the financial sector here – reducing the numbers of retail banks from 12 to five, Dublin still plays host to a huge funds industry, with the value of Irish-domiciled funds put at €1.3 trillion.

The GFCI survey, which is produced by London-based think tank Z/Yen Group, rates financial centres on the basis of metrics such as business environment, financial sector development, infrastructure, human capital and reputation.

New York, London, Hong Kong and Singapore remain the four leading global financial centres, with all four gaining points and retaining their respective ranks.

Top five unchanged

The rankings of the top five western European centres – London, Zurich, Geneva,

Luxembourg

, and Frankfurt – were also unchanged from last time.

Athens, Rome, Madrid, Lisbon and Reykjavik have languished at the foot of the European rankings since the emergence of euro-zone crisis in 2009.

Some 11 of the top 12 Asia-Pacific centres, however, saw a rise in their ratings and rankings, with Busan in South Korea enjoying the largest rise, followed by Shenzhen and Taipei.

All of the Chinese financial hubs rose, with Dalian, the southernmost city of northeast China, a new entry to the index, arriving in 51st place, one place above Dublin.

Shift to Asia

“With the 2008 global financial crisis in the US that led to the debt crisis of

Europe

, the weight of financial markets around the globe is shifting from

North America

and Europe to Asia,” Suh Byung-soo, mayor of Busan, said in the foreword of the latest report.

“While the reputation of New York and London – the traditional financial centres – remains unchanged, Hong Kong and Singapore are narrowing the gap, and the financial centres of Korea and China are also gearing up for a new leap forward,” he added.

The survey comes on the back of the recently published Irish financial services strategy, which targeted the creation of 10,000 new jobs by 2020.