Guernsey has been ranked 16th in the latest Global Financial Centres Index (GFCI).
The Island has moved up three places from the last report which was published in March. Jersey has risen by two places to reach 14th position.
Dublin (13th), Jersey (14th), Luxembourg (15th) and Guernsey (16th) have all been given a rating of 622 and are only split by the decimal places. Guernsey's rating is up 19 points while Jersey is up 15 from the March report.
"Our significantly improved ranking from this respected authority is a major endorsement of Guernsey as a leading international finance centre during these difficult economic times," said Peter Niven, Chief Executive of Guernsey Finance.
"It lends further weight to our belief that the Island is better placed than others to weather the current economic storm. In particular, it reinforces the evidence from the banking and funds statistics that Guernsey is closing the gap on our competitors such as Jersey."
The new ranking follows hot on the heels of Guernsey being named 'International Finance Centre of the Year' at last week's STEP Private Client Awards 2008/9 and the publication of the FT's 'Doing Business in Guernsey' special report where headlines included 'Holding its own against bigger rivals' and 'Sector stays on course in global crisis.'
Mr Niven added: "Our improved ranking also reflects the fact that since the last report we have enhanced our offering to clients through the introduction of a new Trust Law, new Company Law and new Company Registry, while also stepping up our promotional and marketing activity both in existing markets like London as well as new jurisdictions such as China."
The report is produced by the Z/Yen Group for the City of London and ranks financial centres based on external benchmarking data and current perceptions of competitiveness.
The latest version comments on how small financial centres such as Guernsey are proving so competitive against bigger rivals: "It is notable that the tax environment is now being mentioned as a crucial area of competitiveness...There are other reasons why relatively small financial centres are very competitive. Speed of decision making and a coherent regulatory regime are increasingly seen as important."
The Isle of Man has also risen by two places to reach 19th position with a rating of 611. The Cayman Islands is now 21st, Dubai 23rd, Gibraltar 25th and British Virgin Islands 29th.
London remains first but has had its lead cut by second-placed New York.
For more information about Guernsey's finance industry please visit www.guernseyfinance.com.
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