If there’s any doubt why Ireland’s financial sector is facing a brain-drain of talent towards the likes of London, New York and the Asia Pacific, it’s worth taking a look at the latest rankings of international financial services centres. Dublin has slipped from being among the world’s elite to languishing in the doldrums.

The Global Financial Centres Index, which is published on a quarterly basis by consultants Z/Yen, is generally seen as a bellwether for the state of the industry within various countries.

At its peak in late 2007, Dublin was ranked 15th in the world. In the last quarter alone, it slipped ten places and now stands at 43rd, behind the not particularly auspicious financial centres of Kuala Lumpur, Helsinki and the Isle of Man.

Mark Yeandle, author of the report, says that the international perception of Ireland’s domestic banking sector has meant Dublin’s reputation has taken a significant hit – perhaps unfairly, considering the city’s other selling points as a low-cost destination for international financial services firms.

Ken Harbourne, managing director of recruiters Wallace Myer International, says that the “negative” work available in the banking sector is prompting many in the industry to look overseas.

“Most of the work in the domestic banks is around loan restructuring or implementing new mortgage arrears legislation and it’s not a positive place to be, particularly as previously these people would have been working in growth areas” he says. “Add in the fact the most people haven’t had a promotion in years, and looking abroad seems like a logical step.”

The implication is that whereas previously people were moving away from Ireland because of a lack of opportunities locally, now emigration is spurred by the damage that working in Dublin could do to your CV.

“Dublin faces a brain drain of financial services talent towards places perceived as more healthy at the moment,” adds Yeandle. “London and Edinburgh have been obvious beneficiaries of this trend, but we’re also speaking to bankers who have moved from Dublin to the Channel Islands. Guernsey and Jersey have been moving up the rankings.”

Outside of the banking sector, though, there are still plenty of opportunities, says Harbourne. Professional services firms and banks alike are facing a shortage of qualified accountants, for example, while fund services and insurance firms continue to recruit.