Despite Brexit, London remains the most attractive destination for finance, according to a new survey from The Z/Yen global financial centers index (GFCI), news reports on Monday (Sept. 11) said.
According to Reuters reports, London banks surpassed New York City, Hong Kong and Singapore in the survey, which assessed 92 cities’ allure to the financial world based on a variety of factors, including access to talent and infrastructure. London scored 24 points above New York City, representing the largest gap between the two since the GFCI first launched in 2007.
New York City’s ranking also dropped 24 points compared to 2016 levels, the largest drop among top cities in the survey, with analysts attributing the drop to “fears over U.S. trade.”
Reports also highlighted the resiliency of London to take the top spot despite Brexit. But the publication also noted that the survey was conducted in June, and, since then, discussions between Brexit Minister David Davis and the European Commission’s Michel Barnier have grown tense. More London banks have expressed plans to set up EU subsidiaries following Brexit since June, which could also shake up the ratings.
There are troves of analysis regarding the impact of Brexit on the local and global economies, with some experts warning that the effects will be particularly acute for small- and medium-sized businesses (SMBs). Research released earlier this month from Boston Consulting Group and Clifford Chance found that banks may see restructuring costs as high as $18 billion and, as a result, may lead to higher banking costs for SMBs.
Researchers have also attempted to gain clarity into how Brexit may affect Britain’s FinTech community. Reports in February said some FinTechs have already begun to transition out of the U.K. as a result of Brexit; PPRO Group Head Simon Black told reporters at the time that “the exodus is beginning” and that “it will be more visible in 2018.”