Through this post you’ll gain knowledge of the Best and Largest Financial Centers around the World. However, before that we need to understand what a Financial Center means.
Financial Center: Meaning and Importance
A financial center can be defined as any city with an ideal combination of strategic location, presence of important financial institutions such as banks, stock exchanges and major industries – including banks. Such financial hubs contribute significantly to national economies by creating jobs at higher employment rates while improving infrastructure facilities and raising quality of living standards overall.
So, these are just a few features of these cities which make them such an attractive location for business development and expansion – take Mumbai as an example – the Financial Capital of India!
In March 2020, The Global Finance Centre Index (GFCI) unveiled its 27th edition and ranks cities as top financial centers through an online questionnaire conducted with organizations like The World Bank and Economic Cooperation and Development (OCED), making it widely considered reliable source for ranking financial cities.
Before we embark on the actual ranking process, let’s first understand how these rankings are determined. Let’s review their criteria of establishment.
What Makes a City a Financial Center: Criteria Revealed
There are five main criteria used by the index to rank cities as global financial centers.
Attracting new businesses by creating an innovative environment. Monitoring financial sector development to avoid technological stagnation. Guaranteeing that a city provides adequate infrastructural facilities.
Human Capital at its core. Achieves this through creating an enjoyable work culture and offering fair wages as well as taking into consideration reputational and general factors.
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