Financial centers – additional information
A financial center is a region or city with strategic location to the financial industry. It is a place where various participants of the financial sector, such as banks, trading companies, stock exchanges and other institutions, are concentrated in one area. Financial hubs can be characterized by solid infrastructure, stable regulatory and political environments, attractive taxation rules and the availability of various opportunities to help the trade and business grow.
According to a survey carried out among financial services professionals in 2016 the most important factors determining the competitiveness of a financial center were business environment, human capital, taxation, reputation, infrastructure and financial sector development.
According to the Global Financial Centers Index constructed by Z/Yen institute, the following locations have been distinguished as most attractive financial hubs in North America: New York, Toronto, Montreal, San Francisco and Vancouver. In Latin America, Bermuda, Cayman Islands and the British Virgin Islands were given the highest scores. As far as offshore financial centers are concerned, the British Virgin Islands, Gibraltar, the Cayman Islands and Hamilton were ranked highest. An offshore financial center is usually a small country or island with less strict regulatory requirements and a low-tax environment. When financial sector professionals were asked which financial centers were likely to become more significant in the next years as 2016, they indicated the following locations: Shanghai, Qingdao, Singapore, Dublin and Shenzhen.