- Banks’ cross-border claims increased by $228 billion in the third quarter of 2021, pushing their year-on-year (yoy) growth rate to 3%. Claims on non-bank financial institutions accounted for more than half of the quarterly increase.
- Non-US banks increased their US dollar funding to their affiliates in the United States and, in turn, expanded their claims on the US official sector through greater holdings of US Treasury securities and reserves at the Federal Reserve.
- Claims on emerging market and developing economies (EMDEs) fell modestly in the third quarter, driven by a contraction in claims on China. By contrast, claims on Latin America and Africa and the Middle East grew.
- The global liquidity indicators (GLIs) show that financing through the bond market now accounts for as much dollar credit to EMDEs as lending from internationally active banks.
- For the first time since the start of the Covid-19 pandemic, growth in dollar- and euro-denominated foreign currency credit outpaced domestic credit in the respective currency areas.
Link: BIS international banking statistics and global liquidity indicators at end-September 2021