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.