- US dollar credit to non-bank borrowers outside the United States rose to $11.5 trillion at end-March 2018, up by 7% over the previous year.
- Euro-denominated credit to non-bank borrowers outside the euro area grew at an annual pace of 10%, reaching €3.1 trillion at end-March 2018.
- US dollar credit to emerging market economies (EMEs) rose to $3.7 trillion at end-March 2018. The expansion was fuelled by international debt securities, which grew at an annual rate of 16%.
US dollar and euro credit to non-residents continued to expand
Graph 1: Annual growth of foreign currency-denominated credit to non-resident non-banks (interactive graph).
Source: BIS global liquidity indicators (Tables E2.1 and E2.2).
US dollar credit to non-bank borrowers outside the United States rose to $11.5 trillion at end-March 2018, up by 7%over the previous year (Graph 1). Growth continued to be propelled by debt securities, which increased by 11%. Loans increased at a more modest pace of 3%. Since 2012, the growth of US dollar borrowing in debt securities markets has consistently outpaced that in loan markets. At end-March 2018, debt securities accounted for 52% of outstanding US dollar-denominated credit, up from 44% at end-2011.
Euro-denominated credit to non-bank borrowers outside the euro area also continued to expand at a rapid pace. It grew at an annual rate of 10% as of end-March 2018. The latest increase took its outstanding stock to €3.1 trillion.
Debt securities propelled the growth of US dollar credit to EMEs
Graph 2: Annual growth of US dollar-denominated credit to non-bank borrowers in EMEs (interactive graph).
Source: BIS global liquidity indicators (Table E2.1).
Foreign currency credit to non-bank borrowers in EMEs continued to expand in Q1 2018. US dollar-denominated credit to EMEs grew by 9% in the year to end-March 2018, continuing the steady recovery from the contraction of 2016 (Graph 2). The expansion was fuelled by international debt securities, which grew at an annual rate of 16%. Euro-denominated credit rose by around 11%, similar to its pace in previous quarters.
The US dollar accounted for by far the largest share of outstanding foreign currency credit to non-bank borrowers in EMEs, at $3.7 trillion at end-March 2018, followed by the euro (€644 billion, or about $790 billion) and the yen (¥8 trillion, or $70 billion).
The BIS is an international organisation which fosters cooperation among central banks and other agencies in pursuit of financial and monetary stability. It has no supervisory or regulatory functions or responsibilities. Its banking services are provided exclusively to central banks, monetary authorities and international financial institutions. The BIS does not accept deposits from, or provide banking services or advice to, private individuals or companies.
The BIS does not warrant or guarantee the accuracy, completeness or fitness for purpose of any information or material on this website. Under no circumstances shall the BIS be liable for any loss, damage, liability or expense suffered in connection with reliance by any person on any such information or material.
Nothing on this website shall be construed as containing any investment recommendation or advice, or as constituting an offer or invitation by or on behalf of the BIS to subscribe for, purchase or sell any shares, securities or other financial instruments.
Except where expressly stated to the contrary, the views stated in any material on this website are those of the named authors thereof and are not necessarily those of the BIS or its member central banks.
References in any material on this website to specific companies, products or services do not imply that they are endorsed or recommended by the BIS in preference to similar companies, products or services that are not mentioned.
The designations used and the presentation of material on this website do not imply the expression of any opinion whatsoever on the part of the BIS concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers or boundaries.
This website may contain electronic links to other websites. This does not imply any endorsement or responsibility on the part of the BIS with respect to the opinions, ideas, data or products presented on other websites.
Under no circumstances shall the BIS be liable for any loss, damage, liability or expense suffered in connection with the use of this website, including (but not limited to) any fault, error, omission, interruption or delay.