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Cross-border banking activity contracted significantly between end-March and end-June 2015, halting the latest expansion which started in Q1 2014. The Bank for International Settlements (BIS) locational banking statistics reveal that cross-border claims fell by $910 billion during Q2 2015 to stand at $28 trillion at end-June 2015. This sharp drop slowed the annual growth rate of cross-border lending to 1%, down from 6% at end-March 2015.
Bank credit to advanced and emerging market economies (EMEs) diverged during Q2 2015. Cross-border claims on advanced economies fell by $918 billion.
This quarterly decline more than offset the $760 billion increase that took place during Q1 2015, bringing down the year-on-year growth to less than 1%. By contrast, cross-border claims on EMEs grew by $45 billion in the course of Q2 2015, almost reversing the $57 billion contraction during the previous quarter. Despite the latest quarterly increase, the annual growth rate of cross-border lending to EMEs turned negative (–1%) for the first time since end-September 2012.
Highlights from the latest BIS international banking statistics:
Published data are subject to change. Revised data will be released concurrently with the forthcoming BIS Quarterly Review on 6 December 2015. The international banking statistics at end-September 2015 will be released no later than 22 January 2016.