Basel, Switzerland (4E) – Bank lending to developing nations rose to its highest level in the first quarter, driving the share of interbank loans going to emerging markets to double in size, according to the Bank for International Settlements (BIS).
In the first quarter, cross-border lending to emerging markets rose to around $3.4tn, an increase of $267bn, the BIS said on Sunday.
Banks from the euro-area increased lending to emerging markets for the first time since the second quarter of 2011, according to BIS. The figures also showed there has been a surge of credit activity from lenders in Germany, France, the Netherlands and Luxembourg.
Data from the European Central Bank showed that banks’ credit to euro zone residents was unchanged in the first quarter from the previous year and fell 0.1 percent in the second quarter.
The release of the data comes as the U.S. Federal Reserve prepares for its policy meeting this week, where it will decide the pace and timing at which it will trim down its $85bn-a-month bond-purchasing program.
The share of emerging markets of international interbank loans rose twice the size to 14 percent since 2008. Lending to emerging market banks increased 12 percent, compared with the 2.4 percent fall in developed countries, according to BIS data.