A of any kind is a city in which are concentrated financial activities-banking, insurance, and ancillary types of financial businesswhich cater to a region outside the city itself, which may include other cities as well. An financial center, like London or New York, and in a lesser way Paris, Hamburg, and Zurich, caters to the financial requirements of a region extending beyond the boundaries of the nation within which the city is located to embrace the whole world or a substantial part of it. In the case of London and New York, at least, the center developed from being a national financial center through the demand for financial services to cater to the needs of its government, citizens, and enterprises as they engaged in economic activities throughout the outside world or a significant part of it. In other words, the major international financial center developed from a strong base as a national financial center in a large and powerful country with the natural market support of citizens of that country who automatically turned to its financial center for financial services they needed in other countries and the advantage of knowing intimately the nature of the customers involved. Regional financial on the other hand, such as Hong Kong, Singapore, and Panama, derive their role primarily from a combination of geographical proximity to the countries in which the customers operate and the safety and ease of operation of subsidiaries, branches, and agencies of foreign banks whose head offices lie in the international financial centers, rather than in generating customers in other parts of the region through their own national size and international power and the competence of their own national banks in international financial business. In other words, they are largely hosts to foreign financial institutions that find it convenient to locate offices there rather than magnets of financial
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