New York has elbowed its way on to the top of the banking and finance podium as the US city, for the first time, tied with London in the latest ranking of world financial centres.

But neither city can rest easy, as Hong Kong and Singapore are gaining ground on them in the Global Financial Centres Index compiled by Z/Yen for the City of London Corporation. The table, which combines a survey of financial professionals with factors such as office rents, airport satisfaction and tax rates, also highlights the growing challenge from Asia.

Fears about a regulatory backlash and new taxes drove down London's score by 14 points to tie with New York at 775 points. New York's score rose by only one point, Hong Kong and Singapore posted double-digit gains, and all but four of the 75 cities in the survey recorded improvements in their scores. The gap between London and New York and the rest of the world is at its narrowest since the twice-yearly survey began in 2007.

“This research is a wake-up call for decision-makers that our standing as a world-leading global financial centre should not be taken for granted,” said Stuart Fraser, policy chairman for the City of London, which promotes the UK financial services sector and provides local services.

New York outpolled London for business environment, availability of people and infrastructure, but the US city was also seen as having sustained the most damage in the financial crisis.