The annual growth rate of cross-border lending to the Middle East and developing Africa remained strong, despite decelerating slightly to 8 percent at end-2018 from its recent high of 11 percent at mid-2018. The largest increases in claims during Q4 2018 were reported vis-à-vis Qatar (+$7bn), the United Arab Emirates (+$6bn) and South Africa (+$5bn), Bank for International Settlements (BIS) data showed.
The BIS international banking statistics noted global cross-border bank claims continued to expand at an annual pace of 1 percent. They rose by $134bn during Q4 2018, to stand at $29 trillion at the end of the year. After a year of near zero growth, cross-border credit to advanced economy borrowers expanded by $76bn in Q4 2018, which brought its year-on-year rate to 1 percent at end-2018.
Claims on the United States expanded by $137bn during the last quarter of 2018. By contrast, banks reported contractions in their claims on Germany (–$127bn), Japan (–$71bn) and the Netherlands (–$47bn) during Q4 2018.
Cross-border claims on offshore centres as well as emerging market and developing economies (EMDEs) expanded modestly (by $42bn and $30bn, respectively) in Q4 2018. The annual growth rates of claims on both regions slowed to 3 percent.
Cross-border claims on developing Europe continued to contract, declining at an annual rate of 5 percent as of end-2018. The $16bn decline during Q4 2018 was primarily led by a $10bn fall in claims on Turkey. Cross-border claims on Turkey decreased by 13 percent (on an exchange rate- and break-adjusted basis) during the second half of 2018.
