The U.K.'s standing among global financial centers may have been dented by Brexit, but it remains the largest in Europe by far.
A report by think tank New Financial analyzed the size and growth of financial centers in 65 markets around the world and produced an index based on more than 40 metrics of activity.
The firm said that, unlike other rankings of financial centers, its index is based on the value of activity, which New Financial said reflects its attractiveness as a center.
The U.K. is "by far" the largest financial center in Europe and second in the world behind the U.S. New Financial scored the U.K. at an overall 35 out of 100 across its metrics — more than three times the score for France (13) and Germany (12). The U.S. scored 84.
Focusing on international banking and finance, the U.S. again came top, with a score of 76, following by the U.K. at 56 out of 100. Again, the U.K. beat France (11), Germany (12) and fellow European rival Luxembourg (22).
In terms of trading and clearing, the U.K. also won out vs. other European countries and also beat the U.S., with 79 out of 100 across seven metrics specific to the category. The U.S. scored 78, while Germany scored just 5 points.
New Financial also analyzed growth in activity. Domestic activity in the U.K. has "largely stagnated" since the Brexit vote in 2016, with average growth of zero across 21 metrics compared with 16% growth globally and 14% growth for the European Union's 27 member states.
In terms of international activity, however, the U.K. grew 19% but lost market share to financial centers in Asia, with both Hong Kong and Singapore growing by more than 50%, the report said.
While New Financial's report said it was too early to measure Brexit's impact on the U.K. as a financial center, the new index gives a benchmark to measure impact in the future, with plans to update it in a few years.
The index "underlines the dominance at a global level of the U.S. market" and also highlights the "huge lead that the U.K. has over other European financial centers — particularly in international banking and finance," William Wright, founder and managing director at New Financial, said in emailed comments.
"It is too early to measure the full impact of Brexit but this index underlines how dominant the UK as an international financial center in Europe. While that lead has already been dented in some sectors — such as foreign equity trading, foreign bank assets, and financial services exports — there is no evidence yet that Brexit will lead to the any financial center in the EU coming anywhere close to London's position as an international financial centre anytime soon."
A copy of the report may be requested by email.