Cross-border bank lending pulled back significantly in the second quarter of 2015, the Bank for International Settlements (BIS) announced on Wednesday.
Cross-border bank lending dropped by US$910 billion during the quarter ended June 30, the BIS says.
This is the first significant contraction in cross-border lending since late 2013, the bank says, adding that it more than offset the US$781 billion expansion in the first quarter of the year.
Cross-border claims on advanced economies fell by US$918 billion in the second quarter, the BIS says, whereas claims on emerging market economies increased by US$45 billion.
In particular, cross-border claims on China rose by US$36 billion during the quarter, the BIS says. “Despite this moderate quarterly increase, international bank lending to China lost significant momentum in the past few quarters,” it says, noting that lending to China contracted by 3% in the 12 months to the end of June.
The cross-border banking statistics are subject to revision, and revised data is slated to be released on Dec. 6.