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About strategies development of international financial centres
Material posted: Grinyaev SergeyPublication date: 10-09-2007

In recent months, intensified competition among global financial centers for dominance in the global financial system. According to experts, such a development is expected and meets the processes occurring today in the global financial system. The main motive in this case is the approximation of the global financial crisis, whose consequences can be so significant that will fundamentally change the existing financial world. In these circumstances, quite naturally the intensification of the struggle between financial centres for the preservation of their own status.

In particular, the intensification of the struggle was clearly manifested in the development strategies of financial centers, presents in the last few months.

In the summer of 2007 hearings in the U.S. Senate was presented with a report on the role and place of new York as a global financial centre, and its prospects in the coming years.

The most important provisions of the strategy of development of the new York financial center is the thesis about the vital need for the United States maintain leadership in the field of global Finance in the coming years. Given the significance, the question of the dominance of new York in the global financial system declared a national priority with the responsibility of the current administration to make every effort to preserve "the status quo".

The authors of the strategy, in particular, it is noted that in difficult conditions of instability of the global financial system that led to the fact that the oldest global financial centre — London faltered and lost its leading value, giving primacy to new York, it is extremely important to make every effort to ensure that, as much as possible to seize the powers of London, and not to allow it to recover its leading position in the world of Finance.

In the same period, the number of research structures in the city of London, was also offered a promising vision for the future of London as a world financial center.

Key to this strategy is the recognition by London of the extremely tough competitive environment and the loss of leadership in a number of positions. However, the authors of the strategy do not believe that the world center of Finance moved to new York and ready to continue the struggle for leadership. Such fact is interesting. The British developed the rating of financial centers in the world (The Global Financial Centres Index). In 2007, the list of financial centres includes 46 positions. The top ten is as follows: London, new York, Hong Kong, Singapore, Zurich, Frankfurt, Sydney, Chicago, Tokyo, Geneva. Moscow in this rating occupies the 45th position, and closes his Athens. Characterized by this fact: in the top 10 of the world's three financial centers (London, Singapore, Hong Kong) is closely associated with the British Empire.

In early September 2007, the development strategy has also represented Switzerland.

The Swiss strategy is presented 17 world financial centres: new York, London, Boston, Panama, Bermuda, Monaco, Luxembourg, Liechtenstein, Frankfurt, Saudi Arabia, Bahrain, Qatar, Dubai, Kuala Lumpur, Singapore, Hong Kong, Shanghai, Seoul. Leadership for London and new York.

The Swiss strategy was presented in Zurich the management of the Swiss stock exchange together with the leaders of the Association of Swiss banks and insurers Association of Switzerland. The strategy seeks to transform Switzerland into third (from 17 identified in the document) the global financial centre by 2015.

Strategy analysis allows to draw the following conclusions. In the global financial elite have a clear idea of the complexity of the current situation and the inevitability of the financial crisis. In particular this is evidenced by the period for which the calculated strategy in 2015. The 2010-2015 range of most Russian and foreign experts as the most difficult in the world's financial system. During this period it is most likely the onset of the global financial crisis, until a repetition of the great depression in the United States in early 30 of XX century. In addition, for the same period, according to some, accounts for the sharp drop in hydrocarbon production because of their depletion of the world reserves. All this requires the adoption of preventive measures that designed and developed by Swiss bankers strategy.

The main reasons causing the decline in the significance of Switzerland as the world's leading financial centre, the authors of the strategy call the following:

— loss or a missed opportunity to organize in 1970, with exchange trading in the single European currency (at the time this project "EUR / USD");

— the loss in 1980 of priority to the organization of the global gold trade, as well as the loss of benefits in the organization of trade in other strategic goods;

— lost in the middle of 80-ies the opportunity to position Switzerland as the place of registration of the various financial funds (the position which is now occupied by Luxembourg and Ireland);

— overall poor conditions in the global economy that contributed to the slow process of globalization and the emergence of other centers of investment activity, in addition to Switzerland.

According to the authors of the strategy, the competition between international financial centres is now under way in three areas;

— in recent years a number of territories saw its own value in the global financial system and the ability to build a financial center on its own territory;

— significantly reduced trade and protectionist barriers to global trade, which contributes to the redistribution of financial flows;

— most of the traditional financial centers have realized a significant increase in competition, and develop their own positioning strategy in a new environment.

As the main ways of competition between financial centers, the authors of the strategy are as follows:

— training of highly qualified personnel for the management of key elements of the financial infrastructure and development of new financial technologies. It is planned to create specialised research centres, and centres for the training of specialists;

— development of new methods of legislative regulation of the activities of the financial sector, but also lobbying its interests at the international level;

— improvement of techniques and methods of lawmaking in order to accelerate the development and introduction of the latest legislative acts;

— the development of partnerships between business and the public sector;

— development of new tax legislation;

— complete modernization of the financial infrastructure.

It is characteristic that in the matter of positioning in relation to the situation with mergers and acquisitions, the Swiss stock exchange is exclusively a conservative position. The exchange's management don't tend to consider proposals on mergers, arguing that under the circumstances of Switzerland, it is important to preserve the independence of the stock market. In addition, the stock market as the main direction of their own development sees participation in the project of leading world banks in the creation of a new stock exchange, scheduled for launch in January 2008.


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