BIS Quarterly Review - March 2025

Markets caught in cross-currents

The March issue of the BIS Quarterly Review includes analysis on developments in financial markets, private credit, the evolution of monetary policy frameworks and the international dimensions of credit.

Overview

• Markets caught in cross-currents
  Markets were pulled in different directions during the review period, reflecting different trends in government bonds, equity and corporate credit.

Articles

• The global drivers of private credit
  by Fernando Avalos, Sebastian Doerr and Gabor Pinter
  Private credit has grown against a backdrop of lower policy rates and stricter banking regulation.

• Moving targets? Inflation targeting frameworks,1990–2025
  by Claudio Borio and Matthieu Chavaz
  The features shaping the flexibility of inflation targeting frameworks have evolved substantially since inflation targeting was first adopted nearly 35 years ago.

• Growth of the green bond market and green house gas emissions
  by Jakub Demski, Yingwei Dong, Patrick McGuire and Benoit Mojon
  Issuing a green bond has become a good indicator of reduced corporate emissions, notably for firms that were heavy emitters.

• Commonality under pressure: banks and funds
  by Matteo Aquilina, Giulio Cornelli and Nikola Tarashev
  When banks are under market pressure, strain at investment funds can undermine financial stability.

• International finance through the lens of BIS statistics: the international dimensions of credit
  by Torsten Ehlers, Bryan Hardy and Patrick McGuire
  BIS statistics can shed light on various international dimensions of credit and their impact on financial stability in borrower economies.