Business

Financial services sector down four spots in global index

The Bahamas’ financial services sector fell four spots in the Global Financial Centres Index 29 (GFCI 29) to 73, even though this jurisdiction improved upon its rating from last year by one point to land at 591.

The GFCI is published each year by Z/Yen Partners in collaboration with the China Development Institute and is considered one of the world’s most authoritative comparisons of the competitiveness of the world’s leading financial centers.

Regionally, The Bahamas placed sixth behind British Virgin Islands (global ranking 58), Barbados (64), Santiago, Chile (67), Mexico (69) and the Cayman Islands (72).

“Nine centers rose in the ratings in Latin America and The Caribbean after significant falls in GFCI 28. The average rating in the region rose 11.2 points (1.97 percent). The British Virgin Islands, Barbados and Santiago gained more than 10 places in the rankings. Trinidad & Tobago and Bogota entered the index, ranking 97th and 100th respectively,” the index report states.

As it relates to fintech, The Bahamas was ranked 82 globally, down 13 spots from last year; and received a 40-point improvement in its fintech rating to land at 550 this year.

The GFCI provides ratings for financial centers calculated by a “factor assessment model” that uses two distinct sets of input: instrumental factors in which objective evidence of competitiveness was sought from a wide variety of comparable sources; and financial center assessments by means of an online questionnaire, which has been running continuously since 2007.

“We received 11,009 responses to the questionnaire in the 24 months to December 2020. Of these, 10,774 respondents provided 65,507 valid assessments of financial centers. Financial centers are added to the GFCI questionnaire when they receive five or more mentions in the online questionnaire in response to the question, ‘Are there any financial centers that might become
significantly more important over the next two to three years?,’” the report states.

“A center is only given a GFCI rating and ranking if it receives more than 150 assessments from people based in other centers over time in the online survey. Centers in the GFCI that do not receive 50 assessments in a 24-month period are removed and added to the associate list until the number of assessments increases.”

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Paige McCartney

Paige joined The Nassau Guardian in 2010 as a television news reporter and anchor. She has covered countless political and social events that have impacted the lives of Bahamians and changed the trajectory of The Bahamas. Paige started working as a business reporter in August 2016. Education: Palm Beach Atlantic University in 2006 with a BA in Radio and Television News

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