Key takeaways
- Banks’ cross-border claims rose by $1.4 trillion over the first quarter of 2022, the third largest quarterly expansion on record. Even on a seasonally adjusted basis, the expansion was unusual (+$700 billion), booked mostly vis-à-vis advanced economies (AEs).
- Banks’ cross-border claims on EMDEs changed little overall over Q1 2022, as a drop in claims on China offset an increase vis-à-vis other emerging market and developing economies (EMDEs). Banks’ exposures to counterparties in Russia and Ukraine declined significantly.
- Growth in foreign currency credit (loans and bonds) to non-bank borrowers slowed in dollars but expanded in euros. Foreign currency credit to EMDEs remained resilient.
- Against the backdrop of rising interest rates and geopolitical tensions, partial data on issuance of syndicated loans and bonds foreshadow weaker growth in credit to EMDEs in Q2 2022.
Link: BIS international banking statistics and global liquidity indicators at end-March 2022