In Q4 2023, cross-border claims fell by $377 billion as banks in several advanced economies (AEs) reported lower derivatives claims on the United Kingdom, a centre for derivatives clearing. The outstanding stock settled at $39 trillion. Cross-border credit (ie loans plus holdings of debt securities), however, grew by $319 billion in Q4, driven by lending to non-banks. Banks in Japan reported higher claims on the non-financial sector in the United States. Cross-border dollar credit recovered in 2023, after having declined during the Federal Reserve’s policy tightening and dollar appreciation in 2022. Credit to emerging market and developing economies (EMDEs) increased by $30 billion in Q4 2023, mostly driven by an expansion in renminbi credit. The BIS global liquidity indicators (GLIs) show a slight drop in US dollar-denominated foreign currency credit overall in Q4 2023; US dollar credit to EMDEs, however, grew by $12 billion.

This information was gathered from the Bank for International Settlements