Toronto challenges global financial rivals

CANADA'S economic capital city Toronto is throwing down a challenge to London and Edinburgh by investing millions of dollars to move up the global league table of financial sectors weakened by the banking crisis.

In the latest ranking of financial services sectors London lost its pre-eminent place to share it with New York, while Edinburgh slipped down from 27 to 28.

According to the Global Financial Centres Index, Toronto rose in the rankings and emerged as a "global player" after it survived the crisis "relatively unscathed" due to the conservatism of its banks and banking regulation.

Toronto Financial Services Alliance president Janet Ecker said the Province of Ontario had pledged $1 million to build up "niche" areas of specialism. "Toronto can be the global hub for knowledge and learning about governance, and the complex issues of managing risk and balance sheets – drawing on existing resources, building on them, and drawing expertise from around the world," said Ecker.

Ecker believes funding and strategic focus on key areas will create up to 40,000 jobs and add about $5 billion to annual GDP over the next five years.

She said the city would take a "typical Canadian approach" to the changing climate. "We want to do it in partnership – we don't want to come to town and eat your lunch. We want to make business arrangements for mutual benefit."

But she insisted Toronto's financial firms have "weathered the storm. They have proven their value to our economy in a time of need. When other sectors shrink, they are able to grow."