Banks’ cross-border claims, which comprise mainly loans, debt securities and derivatives with a positive market value, increased by $1.1 trillion in Q3 2022, raising the year-on-year growth rate to 10%. Derivatives drove this increase. Of this total, the change in cross-border credit, defined as loans and holdings of debt securities, was only $169 billion. Euro-denominated credit outpaced dollar credit, which remained virtually unchanged. Credit to advanced economies continued to grow, while that to emerging market and developing economies1 fell, driven by a contraction in credit to China and Hong Kong SAR. Foreign claims on Russia fell by a third since end-2021. In the BIS global liquidity indicators, dollar credit to non-banks in EMDEs fell sharply, whereas credit in euro and yen expanded. The contraction in dollar credit mainly reflected a drop in bank loans. The stock of international debt securities denominated in US dollars issued by EMDEs declined for the first time since the Great Financial Crisis of 2008–09.

This information was gathered from the Bank for International Settlements