A financial centre is a global city that is a company and business hub, as well as being home to many world famous banks and stock exchanges.

Financial centres have existed throughout history in ancient centres such as Babylon and Constantinople.

At present, the top financial centres in Europe, North America and Asia-Pacific are London, New York and Hong Kong respectively. (See Reference)

Other financial centres include: Singapore, Zurich, Frankfurt, Chicago, Sydney, Tokyo, Paris, Toronto, Milan, Madrid, Shanghai, Mumbai and Sao Paulo. The Global Financial Centres Index by City of London Corporation is updated annually.

“Financial centres are where market liquidity is and market liquidity is very hard to move. Nobody can move liquidity unilaterally and so once a global centre such as London or New York has been established it is virtually impossible to move. It will take a number of significant factors, acting over a number of years to alter the status quo now that it has been established.” (Head of Trading, London-based investment bank)