INTERNATIONAL FINANCIAL CENTERS IN THE GLOBAL ECONOMY

Abstract

The article discusses the preconditions for the emergence and role of international financial centers (IFCs) as key institutions of the global financial market, which at the end of the 20th century acquired the most important function in the accumulation and circulation of international capital, which is closely connected with the globalization of the world economy. It traces the history of the emergence of IFC and analyzes the main trends in their development in the context of economic globalization, in particular their numerical growth, development and enlargement of regional IFCs, strengthening their influence on the development of the base country and the world economy. On the basis of new global trends and challenges of the 21st century, the analysis covers the prospects of IFCs’ development in the emerging information society and, in particular, the use of new financial technologies (fintech), rapidly spreading throughout the world. The study is based on empirical data provided by the renowned Global Financial Center Index (GFCI), which has been published annually since 2007. The article reveals the changing landscape of IFCs, which is determined primarily by the rapid development of new financial centers in East Asia and other regions of the world. The author concludes that international financial centers are playing an increasingly important role in the world economy and its financial sector. They perform their functions primarily through the management of cash and resource flows, cross-border financial transactions involving investors from different countries, structuring financial flows, providing various financial services, and also have a growing influence both on the management decisions of companies and on the management of national economies. In this role, IFCs are taking on the role of a geoeconomic instrument.