During the third quarter of 2024, banks’ cross-border claims expanded by $629 billion, up 3.4% year on year. The expansion in claims was primarily driven by cross-border bank credit (ie loans and holdings of debt securities) to non-bank financial institutions (NBFIs) in advanced economies. Cross-border bank credit to emerging market and developing economies expanded, notwithstanding a contraction vis-à-vis China. The BIS global liquidity indicators reveal that the ongoing weakness in dollar and euro credit to emerging Asia dates back to the respective starting points of the post-Covid Federal Reserve and ECB tightening cycles.

This information was gathered from the Bank for International Settlements