Luxembourg ranked 2nd in the EU in new financial centre index
The inaugural edition of the New Financial International Financial Centres Index ranks Luxembourg as the 2nd financial centre in the European Union, after the UK. In terms of international activity, Luxembourg even ranks 3rd globally behind the US and UK but ahead of major European and Asian financial centres such as Hong Kong, Singapore, Germany or France.
The International Financial Centres Index, published by London-based think-tank New Financial, focuses on quantitative factors, while making a distinction between domestic and international activity. It also takes into account qualitative factors such as political stability, legal environment, quality of life and human capital. Here Luxembourg ranks 2nd globally, just behind Switzerland.
The ranking confirms Luxembourg’s role as a leading international financial centre, focused on cross-border financial services and products. Indeed, as the report explains, while the rankings according to domestic financial activity are largely a function of the size of a given country’s economy, the rankings of international financial activity are a clearer indication of the size and depth of different countries as financial centres.