{"id":163692,"date":"2020-01-22T13:48:28","date_gmt":"2020-01-22T18:48:28","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163692"},"modified":"2020-01-22T13:48:28","modified_gmt":"2020-01-22T18:48:28","slug":"europe-banks-continue-to-boost-cross-border-loans-bis","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/europe-banks-continue-to-boost-cross-border-loans-bis\/","title":{"rendered":"Europe banks continue to boost cross-border loans – BIS"},"content":{"rendered":"
January 22, 2020<\/div>
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By CentralBankNews.info<\/u><\/a><\/p>\n

International lending by European banks, especially French banks, continued to rise in the third quarter, suggesting the contraction seen following the 2007-2009 global financial crises has now been reversed, according to the Bank for International Settlements (BIS).<\/p>\n

The expansion of European banks’ cross-border lending comes amid an overall 9 percent rise global cross-border claims in the third quarter to $31 trillion at the end of September, the highest growth rate since end-March 2008, according to the latest International banking statistics by BIS, the Swiss-based forum for central bank cooperation.<\/p>\n

The global expansion in lending was mainly driven by activity in advanced economies, which rose 10 percent year-on-year in the third quarter, while claims on emerging and developing economies contracted by 3 percent, with the biggest falls seen in claims on China, Turkey and Mexico.<\/p>\n

As in recent quarters, lending to non-bank financial institutions continued to expand rapidly, rising by an annual 17 percent in the third quarter, outpacing the growth in claims on all other sectors.<\/p>\n

One of the effects of the global financial crises was that banking regulators worldwide tightened their supervision of major banks, forcing them to retreat from riskier financing operations.<\/p>

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Non-bank financial firms, such as insurance companies, specialized lenders, leasing firms or institutional investors, such as pension funds and brokerage firms, took advantage of this hole in the market place.<\/p>\n

Following the global financial crises, European banks retreated from international lending whereas U.S. and Japanese banks continued to expand their presence, BIS said.<\/p>\n

For example, between mid-2008 and end-2017 German banks’ cross-border claims on non-banks fell an average annual rate of 5 percent while those of Japanese and U.S. banks’ claims rose an average 7.0 percent and 4.0 percent, respectively.<\/p>\n

But since 2018 European banks’ cross-border lending has been expanding again, with an average annual growth rate of cross-border claims 9 percent by euro area banks and 11 percent by UK banks.<\/p>\n

French banks have been particularly active, with their claims expanding at an average annual rate of 21 percent while the claims of German banks has remained virtually unchanged, BIS said.<\/p>\n

To read the full BIS report, please click here.<\/a><\/p>\n

www.CentralBankNews.info<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By CentralBankNews.info International lending by European banks, especially French banks, continued to rise in the third quarter, suggesting the contraction seen following the 2007-2009 global financial crises has now been reversed, according to the Bank for International Settlements (BIS). The expansion of European banks’ cross-border lending comes amid an overall 9 percent rise global cross-border […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-163692","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=163692"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163692\/revisions"}],"predecessor-version":[{"id":163702,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/163692\/revisions\/163702"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=163692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=163692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=163692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}