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Key takeaways
- 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.
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