The UK has come second in the New Financial International Financial Centres Index, with 40 points across 30 metrics
It was beaten to the top spot by the US, which got nearly double the amount of points on the index (79).
However, the UK is still the most dominant financial centre in Europe, with its score of 40 being nearly double that of France (8th place) and Germany (7th), and 50% more than Luxembourg.
China ranked third in the index, ahead of Japan and Hong Kong. The strength of its domestic financial activity (48 out of 100) effectively compensated for its relatively weaker performance internationally, even though the score was barely half that of the US’s domestic activity (92 out of 100).
The index noted that international activity in the UK is most at risk from Brexit. Although it is currently the most internationally active in Europe, scoring 46 out of 100 compared to Germany at 13 or France at 11, this could all change following the UK’s withdrawal from the EU.
In April, reports suggested that many financial services leaders expected the UK to remain a top financial services hub post-Brexit; however, fears still remained over the potential effect of leaving the EU on growth.
Despite concerns over the outcomes of Brexit, research in July found demand for financial sector jobs across the UK remained strong.