Thursday, July 19, 2012

Lending to emerging markets rises in Q1 - BIS


    Lending to borrowers in emerging markets expanded by $84 billion in the first quarter of 2012 from the previous quarter while lending to residents in developed economies contracted by $12 billion, according to the Bank for International Settlements.
   Total international lending by major banks reporting to the BIS inched up by $59 billion, or 0.2 percent, to $30.7 trillion in outstanding claims, according to preliminary banking statistics.
    The largest increase in lending to borrowers in emerging markets came from credit to residents of China, which rose by $54 billion, BIS said.

    The drop in lending to developed economies was driven by claims on banks, which fell by $18 billion, a large improvement from the fourth quarter of 2011 when interbank positions plunged by $513 billion from the previous quarter.
    The largest decline in lending was to banks in the United States, France and Switzerland and this was offset by increased claims on banks in Germany and Japan.
    Lending to non-banks in Greece fell by $24 billion in the first quarter with total claims outstanding falling to $101 billion at the end of March, down from a peak of $251 billion recorded at the end of the third quarter of 2009.
    On a consolidated basis, which excludes inter-office positions, international claims rose $748 billion to $19.8 trillion at the end of the first quarter.
    On an ultimate risk basis, which takes into account net risk transfers, other potential exposures stood at $16.6 trillion at the end of March. This was largely unchanged in unadjusted terms with exchange rate movements masking a decline, the BIS said.
    The BIS lending data include the positions of banks resident in Indonesia for the first time, bringing it to 44 countries that report data to the BIS. At the end of March, banks in Indonesia reported international claims of $69 billion and international liabilities of $72 billion.
    Final lending figures and an analysis of the trend in the first quarter will be released by the BIS on September 17 in its quarterly review.
    www.CentralBankNews.info



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