Mumbai is fast emerging as a key financial hub, but there is still a long way to go for the city to attain the scale to figure among global financial centres, a new report has said.
It would be possibly only in the next decade when Mumbai's name can figure alongside the likes of London, New York and Singapore, according to a new report from global economic research firm DB Research, part of German banking giant Deutsche Bank.
The report said that traditional financial centres have lost market share and that of emerging markets has gone up after the global economic crisis that began in late 2008.
"The US and EU financial markets continue to provide around three-quarters of global financial services, albeit, after the crisis, at substantially lower overall levels of market activity in many market segments.
"Emerging financial markets, especially in Asia, have grown strongly in past years and are set to accelerate their catch-up process," DB Research noted.
Nonetheless, big centres like London, New York, Hong Kong and Singapore are set to remain strongholds of global finance after the crisis, building on existing market strength and favourable economic conditions, it said.
It would be only in the long-run that emerging financial centres are likely to succeed in establishing the scale and scope in their market environment that will help them advance into the top group of global locations, but the crisis may accelerate this trend, DB Research said.
Analysts at Deutsche Bank said that the progress made in individual countries, however, cannot belie the fact that many emerging financial centres still have a long way to go to reach the critical volumes, liquidity and levels of maturity.
Besides, they also have a long way to go to achieve the breadth of product choice, capacity and stability of market infrastructure, and market oversight by regulators and supervisors that have been achieved in London, New York, Hong Kong, Singapore, Frankfurt or Paris over many years.
"Nevertheless, it is safe to expect that centres like Shanghai, Mumbai, Dubai and others will assume strong regional and possibly also global positions within the next decade," they said.
For past few years, many policymakers and economists have talked about developing Mumbai into a global financial centre.
Way back in March 2006 while releasing the third volume of the history of Reserve Bank of India, Prime Minister Manmohan Singh had urged for steps to be taken towards making Mumbai not only a viable Regional Financial Centre, but also a Global Financial centre.