IFC refers to the International Financial Center.

International Finance Center refers to a city or region that gathers a large number of financial institutions and related service industries to comprehensively and intensively carry out financial services such as international capital lending, bond issuance, foreign exchange transactions, and insurance. . It is a city that can provide the most convenient international financing services, the most effective international payment and settlement system, and the most active international financial trading venue. The financial market is complete and the service industry is highly intensive.

Having a radiating influence on surrounding areas and even the world is a basic characteristic of an international financial center. Depending on whether financial transactions occur or not, international financial centers can be divided into functional and accounting types. If a financial institution provides services to customers or engages in substantive financial transactions in the local financial market, and creates employment and income opportunities, then the region is a functional international financial center. If no substantive business activities occur, only legal registration is provided. place, it is called an accounting-based international financial center.

The importance of an international financial center:

1. Economic impact

The construction and development of an international financial center has a self-evident economic impact on a city. First of all, the financial industry is an important part of international trade, and financial transactions through international financial centers can promote the development of international trade. Secondly, the international financial center is also an important gateway for attracting foreign investment. The entry of foreign investment can promote the economic development of the city. In addition, the financial industry is also a major tax collector in the city, and the development of the financial industry can bring considerable tax revenue to the city.

2. An important part of the global financial format

The international financial center is an important part of the global financial format. The development of the global financial format cannot be separated from the support and drive of international financial centers. International financial centers can provide financial rules, supervision and standards to promote the development of the global financial system. At the same time, mutual cooperation among financial institutions in international financial centers can also strengthen the collaboration and interconnectedness of the global financial system.

Reference for the above content: Baidu Encyclopedia-International Financial Center