According to the City of London Corporation's annual survey, London is no longer the clear leader among global financial centers, as New York has now risen from second place to level peg with
the British capital. This shift in rankings is attributed to more companies listing in the United States, reducing London's competitive advantage.
Although London still has an overall competitiveness score of 60, up from 59 in 2022, New York has increased its score to match. Singapore was ranked third with 51, followed by Frankfurt with 46, Paris with 43, and Tokyo with 35.
The City of London Corporation acknowledges that Britain is still the world's largest center for international debt issuance, commercial (re)insurance, foreign exchange trading, and the second largest asset management center. However, the number of international company listings in London is falling, and few global firms are choosing to list there.
The Financial Conduct Authority in Britain proposed changes on Wednesday to streamline listing rules, which could potentially attract more international companies to list in London. Finance sector officials in Britain have called for faster reforms of financial rules to bolster the City's competitiveness after Brexit pitted London against EU centers such as Amsterdam, Paris, and Frankfurt.
This decline in London's competitiveness is not new. New York overtook London in 2018 to become the top global financial center in the separate Z/Yen survey. The City of London Corporation is expected to set out recommendations in the third quarter for a long-term blueprint to "kickstart" London's role as a post-Brexit global financial center by 2030.
Chris Hayward, policy chairman at the City of London Corporation, emphasizes that the UK remains one of the most open and global financial centers, with better access to international markets than the US, France, or Japan. However, the City's competitive advantage is at risk, and swift action is necessary to ensure London remains a leading financial center in the future. Photo by Daniel Schwen, Wikimedia commons.