UK emerges as world’s leading financial centre

Buoyed by the relative strength of banking and non-banking financial activities, the UK has emerged as the as the world's leading financial centre overtaking last years leader, the US, according to the latest league table from the World Economic Forum (WEF).

The US slipped to third position behind Australia largely due to poorer financial stability scores and a weakened banking sector, but the UK's gain was marginalised by its financial stability factor, which was worse than Nigeria, Panama and Bangladesh.

The top five on the rankings chart were were the UK, followed by Australia, the US, Singapore and Hong Kong, while China was placed No 26 and India No 38.

Compared to 2008 rankings, China lost 2 places and India 7, while Singapore climbed 6 places and Hong Kong 3. But the biggest winner was Australia, which climbed by 9 spots, mainly due to the global financial crisis hitting hard in developed economies of Europe as well as Japan.

European economic powerhouses Germany was ranked 12, losing 9 places from its No 3 spot in 2008 while France was at 11, losing 5 places from 2008 ranking of No 6. Japan tumbled 4 places to be ranked at No 9.

The world's largest economies took the biggest hit in the World Economic Forum's second annual Financial Development Report released today. Global financial centres still lead in the report's Index, but the effects of financial instability have pulled down their scores compared to last year.