The credit market turmoil and the government bailouts of UK banks have taken their toll on the City of London's status as a financial hub, with nearly two-thirds of institutional investors believing the reputation of the Square Mile has fallen over the past year, a survey has found.

In the 11th annual Financial Services survey, by advisory group Smith & Williamson, 62% of a poll of respondents said the City of London's reputation fell during 2008. This is in stark contrast to the confidence expressed in the financial district in the previous year, when 88% of respondents agreed that London had strengthened its position as a key financial centre in the previous five years.