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Moscow, the world financial center. World Financial Centers Rating

It's no secret that most of the currency transactions in the world are made thanks to special banking and other various commercial institutions. It is through them that colossal cash flows pass , ensuring the stability not only of states as a whole, but also of individuals in particular. Any modern world financial center is a place where transactions are conducted for billions. In this article, we will consider in detail all the features of these "gold veins".

Definition

First of all, we point out that the world financial center is the point of concentration of various banks, financial and credit institutions that perform international financial, credit, currency operations, and also work with gold and securities.

Before the First World War, London was the strongest financial center, which at that time was the Mecca of European capitalism. However, after the end of the war, the United States of America seized the palm of priority, and since the 1960s, the US position has significantly weakened, as new centers have been formed in Japan and Western Europe.

Some information

Each world financial center is an active market mechanism of international importance, actively managing financial flows. To date, the countries of the European Union have somewhat strengthened their positions and become less dependent on the United States, which allowed London to regain its primacy on the European continent.

All the world's financial flows are moving along the so-called channels, including:

  • Maintenance of operations of purchase and sale and services;
  • Currency and credit services;
  • Investment in fixed and working capital;
  • Work with securities;
  • Transformation of a certain part of the national income through the budget in the form of assistance to various developing states.

The best of the best

The rating of the world financial centers in 2016 is as follows:

  1. London.
  2. New York.
  3. Singapore.
  4. Hong Kong.
  5. Tokyo.
  6. Zurich.
  7. Washington.
  8. San Francisco.
  9. Boston.
  10. Toronto.

Each of these giants of the world financial structure should be considered separately.

Canadian miracle

Toronto is the largest city in Canada and, in combination, the administrative center of the province of Ontario. The financial district of the country is physically a very densely built up business district, in which numerous banks, main offices of the largest companies, accounting and law firms, brokerage companies have been "quartered".

The main city of Massachusetts

Boston - the largest settlement in the US region, called New England, the oldest and richest city in the country.

The main sectors of the economy of Boston include insurance, banking and financial. The city is home to the headquarters of Fidelity Investments, Sovereign Bank and State Street Corporation.

Homeland of Silicon Valley

San Francisco is a city with a rapidly developing economy, which is largely due to the availability of a world center of advanced technologies, not only in the world of finance, but also in the biotechnology and biomedical industry.

The Small Business Commission of the city supported the campaign to maintain the share of small businesses. Because of this, the city council was forced to impose restrictions on areas in which it is possible to build supermarkets. This strategy was supported by the population of the metropolis, who voted for the entry into force of the restrictions.

Important point: small companies, whose staff does not exceed ten people, constitute about 85% of all existing enterprises in the city.

The American capital

Washington is primarily a place where the largest number of public managers and employees involved in the service sector are concentrated.

Many companies, firms, independent contractors, non-profit organizations, trade groups tend to settle closer to Washington or directly there to maximally effectively lobby their interests while being in closest proximity to the federal government.

In Washington, two of the world's largest companies are based on their income level: the agency that provides mortgages - Fannie Mae (annual turnover of $ 29 billion, 270th in the world rating), and the US Postal Service ($ 68 billion, 92nd a place).

European Center

Zurich is a city in which about 208 thousand people are involved in the financial sector. This figure is not surprising, since finance is practically the main profitable branch of the whole Swiss economy. Every fifth workplace in the country is connected with monetary resources.

It is noteworthy that during the crisis of 2008 , the breakdown of the banking system in this small European state did not happen. Zurich could easily pass all the storms of the global economic storm, which certainly puts it in the most favorable light before the competition in the world arena.

The Japanese capital

Tokyo is a city in which the stock exchange was opened as far back as 1878. However, for a hundred years, the metropolis was not part of a cohort of international financial centers. There were several reasons for this at once:

  • The financial markets of Japan depended not on market forces, but on government policy, which was always focused on resolving tasks solely of the national economy.
  • During the 1950s and 60s, Japan actively occupied imported capital.
  • Foreign financial institutions did not seek to expand their operations in this market due to strict state regulation.

The so-called "oil shock" of 1974 stimulated the government of Japan to increase total costs in order to bring the economy of the state out of the crisis. A number of steps taken by the country's leadership led to the opening of doors for foreign banks and securities firms in Japan. This, in turn, facilitated the introduction of a computerized transaction system in 1983, offshore banking markets were also established, and since 1987, the conclusion of financial agreements for a certain period started.

As a result, such an economic miracle led to the fact that today Tokyo is a world financial center with the highest competitiveness.

Leader of economic freedom

Hong Kong, like other new world financial centers, is a city of unique opportunities. The media does not pay much attention to it, but if they say it, it is exclusively in a positive way, calling it nothing but the pearl of the East, the city of the future, the legendary city, etc.

Hong Kong for 18 consecutive years is the leader in the field of economic freedom. At the same time, GDP per person is $ 36,796. In addition, the center is the leader and by the number of billionaires - 40 people.

Hong Kong presents to banks and various investors the most optimal development conditions, which is made possible by:

  • Current legislation, protecting intellectual property, goods and products from pirated fakes;
  • Insignificant restrictions in financial and banking activities;
  • Governmental guarantees;
  • Stability of own currency;
  • Insignificant inflation;
  • Presence of own international arbitration;
  • Proximity to Asian, fast-growing countries and markets;
  • The availability of highly qualified workers who speak English.

Asian Titanium

Singapore in the period from 1968 to 1985 did not have any significant competitors in its region, which largely contributed to its development. Today, the world's largest financial centers on the planet are simply inconceivable without this state.

Singapore is a country with high technologies and a strong economy. Transnational corporations play an important role in the development of the financial center . Also in Singapore, one of the highest gross national products in the world.

The country is attractive to investors because of extremely low tax rates. In the state there are only five taxes, including tax on profits and on wages.

Of the imported goods, only four are subject to taxation at the time of importation: any alcoholic beverage, tobacco products, motor vehicles, oil products.

The US Capital Market Center

New York - the second in the world ranking of financial centers. The main period of its formation occurred in 1914-1945. The daily average of the city's foreign exchange market is about 200 billion dollars.

The New York Capital Market has the following features:

  • All the biggest investment institutions of the planet are operating here: Salomon Brothers, Merrill Linch, Goldmen Sacns, Shearson Lehman, First Boston, Morgan Stanley, which guarantee the placement of various securities in the primary market.
  • In the secondary market, stock trading is more important because of their colossal volume.
  • Developing countries have fairly limited access to the New York capital market, which is due to the rather stringent requirements of the Securities Commission.

Unconditional dominant

All major world financial centers are lagging behind their leader - London. The British capital won the fight for the first position largely due to its liberal legislation.

Practically 80% of investment banking operations flow directly or indirectly through London, therefore the city quite reasonably ranked first among all financial centers of the world.

London City owns 70% of the secondary market of all bonds and almost 50% of the derivatives market. In addition, the main city of Foggy Albion actively trades in foreign currency. This segment of the market is growing every year by 30%. About 80% of all European hedge funds are managed from London.

In general, the world's financial centers (London is not an exception) have well-informed international investment bankers, an extensive network of communication facilities, a fairly liberal regulatory structure.

The Russian Pillar

Today Moscow is the world financial center, which is rather low in the world rating (75th place). All the fault is a whole range of problems that prevent the White Stone from rising higher, whose angsts:

  • Absence of full-fledged vessels. The thing is that Russian judges are not fully aware of financial schemes and trading on the stock exchange, and also have no right to hold court hearings on these issues. All because the financial transactions of the exchange do not appear in the laws of the Russian Federation at all.
  • Tremendous taxes. In our time in New York, London, Singapore there are special tax rates on profits of 16.5%. Russia is still only dreaming about this.
  • Absence of a financial instrument to protect investors from a sharp drop in the value of shares in the thirty-day period after their purchase.
  • A large number of fraud and lack of the required number of qualified financiers.

Nevertheless, the leadership of the country envisages plans to bring Moscow to the level of a really powerful financial center by 2020, which will be quite competitive in its environment.

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