The state giants still dominate the banking landscape in Russia, with private-sector institutions having much smaller market shares. The system remains largely Russian-owned, but a number of foreign-owned banks have gained a foothold and are earning a decent profit.
Despite continued economic uncertainty in developed markets, emerging-market financial centres are growing in strength, with expanding foreign exchange markets and inward portfolio investment. However, when it comes to asset management, it could take generations for even the largest ascendant financial centres to catch up with their more established rivals. Writer Charles Piggott
The sharp fall in Gulf property markets has dampened confidence in a market that many expected to be relatively immune to the global financial crisis. But sharia-compliant assets are still growing, and perhaps tougher times will encourage a more sophisticated industry.
Moscow is already the financial hub for the former Soviet territories, but formidable legislative and infrastructure hurdles stand in the way of its aspirations to become a global IFC. Now the city and the Russian state are striving very seriously to address these issues, says Yuri Roslyak.
The Banker's ranking of international financial centres is based not simply on the size of the financial services industry in each location, but focuses instead on the level of international business and the value offered to institutions seeking to expand their overseas operations.
As the fallout from the global financial crisis continues, competition between leading international financial centres has been given a new dimension by threats of tougher regulation in established markets and intense pressure from emerging centres striving hard to push their way into the top league. Writer Silvia Pavoni