Banks cross-border claims rose by $801 billion in Q3 2023 to reach $38 trillion, +1% year-on-year (yoy), driven by derivatives valuations and increased cross-border bank credit (loans plus holdings of debt securities). Cross-border bank credit increased by $448 billion in Q3 (+2% yoy) due to robust lending to advanced economies (AEs). By contrast, credit to emerging market and developing economies (EMDEs) contracted by 3% yoy. Cross-border bank credit to non-banks expanded, with a $254 billion increase in lending to non-bank financial institutions (NBFIs) in Q3 (+7% yoy). Credit to non-financial borrowers in China has been declining since mid-2021, amid tightening financial conditions, Covid-19 lockdowns and strains in the domestic real estate sector. The BIS global liquidity indicators (GLIs) show an uptick in US dollar-denominated foreign currency credit in Q3 2023; US dollar credit to EMDEs, however, continued to decline.

This information was gathered from the Bank for International Settlements