New data on global bank liquidity shows that the provision of credit continues to expand, led by increased shadow bank borrowing in the U.S. and a weaker greenback driving an increase in foreign currency credit.
According to new data from the Bank for International Settlements (BIS), global cross-border bank claims grew by $832 billion (all figures in U.S. dollars) in the third quarter of 2025 to $45 trillion.
“The increase was driven predominantly by cross-border bank credit,” it said — a category that includes loans and debt securities, but excludes derivatives and other claims.
Indeed, cross-border bank credit rose by $730 billion in the quarter. The BIS said that was driven by lending to U.S.-based borrowers ($284 billion worth), followed by developed Europe ($225 billion) and other developed economies ($118 billion). Emerging markets only accounted for $70 billion.
Banks increased their credit to all financial sectors in the third quarter, led by shadow banks (non-bank financial institutions) at $312 billion, an annual growth rate of 13%.
The extension of bank credit to shadow bank borrowers in the U.S., “drove both total bank credit to the U.S, and global bank credit to [shadow banks],” it noted. Shadow banks accounted for more than half of the increase in credit to all U.S. borrowers.
Additionally, the BIS reported that its global liquidity indicators showed that foreign currency credit in dollars grew by 7% year over year in the third quarter, “on the back of a weakening dollar.”
Foreign currency credit in euros also grew by 11% in the period, and credit denominated in yen contracted by 4%, it noted.