British think tank New Financial bases its Global Financial Centres Index on 73 indicators, mainly those measuring the size and volume of financial activities. Its listing of the world’s top financial centre is dominated by the United States, followed by the United Kingdom and China. Luxembourg ranks 8th, just after France and Germany.
4th top financial centre based on the wider environment
In addition to the size and volume analysis, New Financial has also published a ranking taking into account the wider business environment. The indicators used include economic, financial, political, legal, regulatory and social aspects. In this ranking, Luxembourg comes 4th, after the US, the UK and Switzerland.
Most international financial centre in the world
In a complementary study, New Financial analyses the level of internationalisation of the different financial centres. It ranks Luxembourg as the most international financial centre in the world, with international activity representing 60% of its total activity. The country is followed by Singapore, Hong Kong, the UK and Ireland.
2nd biggest hub for investment funds, global leader in corporate and green bonds
According to New Financial, Luxembourg is the 2nd biggest hub for investment funds in the world. It is also the 2nd biggest recipient of foreign direct investment in the financial sector and the 3rd largest exporter of financial services in the world.
The think tank also points out that Luxembourg is the global leader in corporate bond issuance and in issuance of green, social and sustainable bonds by foreign companies.