International Financial Centres Index
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The International Financial Centres Index (IFCI) is an index of the most globally and regionally influential financial markets in the world. It is prepared by the Center for International Finance. The index is one of several that aims to highlight the role of certain cities on the international economy, but it is not a definitive list given the challenges associated with accurately measuring the influence of different financial centres.
History
The Centre for International Finance (CIF) is an non-profit organisation that conducts research in the international financial system and conducts policy advisory and consultancy for governments and international organisations. It was founded in 1978 by economists and experts in the financial services sector. It began publishing an annual report that provided information to the general public on the performance of the global financial sector called the Financial Review. As the Financial Review grew in popularity and as global finance became increasingly interlinked, policymakers and the public became increasingly interested in identifying and describing the impact of globally significant financial centres. This prompted the Editor of the Financial Review to introduce the index as ranking system for financial centres in 1987. This was prompted by the collision of many important international conflicts in the 1970s and 1980s that gave rise to several regional and global economic crises such as the Second Packilvanian Civil War, the Auroran Imperial War, and the Novaran Cold War.
Methodology
The Index is a ranking of the most influential financial centres in the world. It does this by comparing the integration of the urban center into the economy of the world, and its region, and the impact of the city of the world's financial markets. This includes looking at the presence of large and globally or regionally relevant financial institutions, international organisations and financial services Providers. Additionally, it looks at relations of that centre with other centres, and the size of the economic output of that city. Some exceptions have been made where a cluster of urban areas is closely integrated enough or a jurisdiction is geographically small enough to warrant inclusion as a set.
Characteristics
Global and regional financial centres are characterised by the following traits: a large stable economy, an advanced systems for trade and investment, a stable government and policy environment, macroeconomic policies conducive for large financial institutions, a dependable and globally accepted currency, and strong partnerships and relationships.
Ranking and Classification
Alpha Global Centres
Alpha Global Centres are regarded as the most influential financial centres. The influence exerted by these cities is unparalleled. The list goes as follows:
- Sani Bursil,
Great Morstaybishlia, is regarded as the most influential financial centre in the world. It is the largest city by population in the world. It has the largest GVA of any city in the world. It is the home of the largest securities exchange in the world, the Auroran Stock Exchange. It is the capital and largest city of not only the largest national economy in the world (Great Morstaybishlia) but also the largest and most deeply integrated trade bloc and monetary and customs union in the world (the United Nations of the Auroran Continent). It is the headquarters of the some of the largest and most eminent banks in the world such as Golding Smithant and Vocher Cada. - Matthews,
South Hills, is the economic and financial centre of the second largest national economy in the world and of the country whose currency, the Standard Hawking Dollar (SHD), is one of two alpha world reserve currencies. It is home to the most eminent global credit rating agency in the world (Preston & Cole), the second largest securities exchange in the world (the Concordian Stock Exchange), the largest home mortgage finance corporation in the world (Connie Max), and the largest card payment manager in the world (Plexis) and other financial institutions such as SHBG, First Bank of South Hills and Chartered & Merchantile - Bingol,
Packilvania, is the second most populous city in the world. It is the capital and largest city of the third largest economy in the world and largest country in the world by population and the largest developing national economy in the world. It is the home of the Packilvanian Central Bank, which issues the Packilvanian dinar (a beta world reserve currency). It is also the home of some of the largest banks in the world: the Industrial and Commercial Bank of Packilvania, the Agricultural Bank of Packilvania, and the Export-Import Bank of Packilvania.
Beta Global Centres
Centers of secondary global influence are as follows:
- Tarov,
Tivot, is the largest conduit offshore financial center (colloquially known as a tax haven) in the world and the home of the most powerful central bank in the world, the Auroran Central Bank, which issues one of two alpha world reserve currencies: the Kirib (which is the largest multi-national currency in the world). It also host the largest or second-largest transhipment port in Aurora. - Osfjord,
Norgsveldet, is the home of the North Concordian Bank, which issues the second most used multi-national currency in the world, the United Krone (which is a beta world reserve currency). It is a major financial centre in the second largest free trade area in the world, the North Concordian Economic Forum. - Molebaai (also known as Milba),
Vistaraland, is the economic centre of a transcontinental country that occupies an important economic role in the North Concordian Economic Forum, in which it is the largest city by population.
Regional Financial Centres
In no particular order, the following cities exert considerable influence over the regional economies they are located in:
- Volkgoroda,
Volkia, is the centre of the largest economy in Itur and exerts influence in Northeast Yasteria. It is the base of the Volkia Union Bank - Astryon,
Free Pax States, exerts influence in Southeast Yasteria - Eldura,
Vekaiyu, is the largest city in the Vekaiyun Union by population and GVA, and exerts influence in Northeast Yasteria - Stromharad,
Asendavia, is the economic and population centre of the fourth largest economy in the world. - Sigested,
Tretrid, is the financial and economic centre of the most influential and economically relevant countries in the League of Novaris - Nuvrenon,
Tavaris, is arguably the economic centre of the Tavari Union and exerts influence in the Council of Gondwana - République C.D,
Federation of the Southern Coast, is the political centre of the third largest monetary union in the world Red Crown Economic Union and the seat of the largest airline alliance in the world, the Vindens Pust Airline Alliance. - Leidenstad,
Cryria, is the home of the largest inter-bank transfer network in the world, the International Banking Exchange Cooperative. Through Cryria's political stability, extensive economic ties, and prudent economic policies, is a major financial centre in the League of Novaris - Aura,
Emberwood Coast, is the political capital of the United Nations of the Auroran Continent and the second-largest city in Aurora by population and GVA - Andel,
Axdel, is the largest city of the second largest economy in Aurora - Tokapa,
The Oan Isles, is the home of the Auroran Monetary Fund (one of the largest development finance and trade balance institutions in the world), and it is home to the largest professional services network in the world (Ita Marama), and houses prominent financial institutions such as the Standard National Bank and financial technology companies like Café Pay - Privetia Taurillien,
New Leganes, is at the centre of one of the most developed and stable countries in the world and is a major financial centre in the Organization for Arcturian Cooperation.
Specialist Financial Centres
There are also specialist financial centers such as:
Vakrestrender is unique in that it is a sink offshore financial centre that exerts disproportionate financial influence through its entertainment and media financing and its role in the Norgsveltian and Akuan financial systems for instance as the base of the Lotus Development Bank and the Akuan Development Bank.- Fort Jubrayn, Great Morstaybishlia, is a major tech hub (as the global hub of Damehowe, Buddy and Debby) with financial services providers geared towards startups and technology companies.
- International Trade Zone,
Tamerlaine, is a trade finance clearing and financial administration centre that attracts global companies conducting Trans-Halcyon Sea Trade
Reception
The Index is generally cited as a useful metric for comparing financial centres and the characteristics and policies that set them apart from their peers. It also helps institutions and governments identify nodes of risk and opportunity in the global financial system. The commentary which accompanies the index is noteworthy for sharing insights into the outcomes presented by different policy decisions and financial circumstances. Nevertheless, the index has been criticised for prejudicing developing countries and discrediting Socialist economies. Some analysts have argued that the criteria for inclusion on the index as an influential offshore financial centre are often routed in capitalist neoliberal economic thinking that prioritises an excessive focus on trade and financial liberalisation at the expense of robust financial, and environment controls and fail to consider the social, political and environmental factors that these centres bring. Others have criticised the CFI for its placement of cities with some arguing that certain cities should be ranked higher, or lower, added and removed altogether.