Indicators

The OFEX database is representative, built from reliable and in-depth data sources, and contains 55 indicators measuring the attractiveness of financial centres according to four categories.

Only indicators whose construction method is transparent, comparable between countries/cities and from reliable sources validated by experts, are used into the index (e.g. OECD, BIS, IMF, World Bank…). Priority has been given to indicators with some historical depth. A few exceptions had to be made for important indicators (notably for the digital and ESG financial sector development) that were deemed too important for attractiveness to be left aside even if not all the criteria were met.

Indicator selection was also a balance between comprehensiveness and interpretability. For example, usually when redundant or very similar indicators were identified, only one was kept. Prioritization was based on data source reliability, historical depth or indicator reliability.

The database contains historical data since 2000 and is updated on a yearly basis.

OFEX relies on indicators categorized in 4 main categories:

  • Financial and economic sector development (22 indicators):  Financial market size, volumes, major actors & credit market size and economic dynamism
  • Human capital (14 indicators): Human capital availability and capacity to attract it
  • Infrastructure (4 indicators): Transport and telecom infrastructure development and quality
  • Business environment (15 indicators): Ease to create, develop and maintain a profitable business

Financial market size, volumes, major actors & credit market size and economic dynamism.

  • OTC FX derivatives turnover - BIS
    Global foreign exchange and over-the-counter derivatives markets
  • OTC IR derivatives turnover - BIS
    Global interest rate and over-the-counter derivatives markets
  • Gross insurance premiums - OECD
    Total insurance premiums in the reporting country
  • Listed bond value - BIS
    Total debt securities outsanding
  • Market capitalization on stock market - The World Bank
    Share price multiplied by the number of shares outstanding for listed domestic companies
  • Number of listed companies - The World Bank
    Listed domestic companies, including foreign companies which are exclusively listed
  • Total credit to households - BIS
    Total amount of combined funds that are provided to individuals by financial companies
  • Total credit to non-financial corporations - BIS
    Total amount of combined funds that are provided to non-financial corporations by financial institutions
  • Value of bond trading - World Federation of Exchanges
    Total value of bonds trading on electronic order book
  • Value of share trading - World Federation of Exchanges
    Total value of share trading on electronic order book
  • Volume of share trading - World Federation of Exchanges
    Total number of share trading on electronic order book
  • Capital raised through IPO - World Federation of Exchanges
    Total capital raised through IPO
  • ESG bonds - Climate Bonds Initiative
    Amounts of green, social and sustainable bonds issued
  • AML effectiveness - Basel Institute on Governance
    Measures the risk of money laundering and terrorist financing
  • Global fintech ecosystem rankings - Findexable
    Scores the quantity of privately owned fintech companies, the quality of those companies, the local business environment
  • Bank assets - BIS
    Positions reported by banks on local positions in the fourth quarter
  • Clearing house transactions - BIS
    Value of transactions cleared by clearing houses
  • Central securities depositories transactions - BIS
    Value of transactions processed by central securities depositories
  • Assets under management value - EFAMA
    Total net assets excluding fund of funds in the fourth quarter
  • Fintech activity index - The World Bank
    Scores the investments in fintech, usage of fintech credit, usage of digital payments and finance app downloads
  • International financial institutions - Institut Louis Bachelier
    Number of international cross-boarder financial institutions