Emerging Markets' Reliance on Foreign Bank Credit

14 Pages Posted: 7 Mar 2019

See all articles by Bryan Hardy

Bryan Hardy

Bank for International Settlements (BIS) - Monetary and Economic Department

Date Written: March 5, 2019

Abstract

This article examines the importance of foreign banks in the provision of credit to emerging market borrowers. It documents this along two dimensions: the share of total credit provided and the concentration of claims from different foreign banking systems. The share of credit from foreign banks in total credit to emerging market economies has fallen since the Great Financial Crisis, but still stands at 15-20% on average, with the remainder provided by domestic banks or non-bank creditors. On the other hand, concentration in the market share of foreign creditor banking systems has risen. The official sector tends to be less reliant on foreign banks for credit, but more concentrated in its foreign banking system creditors than the private sector.

JEL Classification: F34, G21

Suggested Citation

Hardy, Bryan, Emerging Markets' Reliance on Foreign Bank Credit (March 5, 2019). BIS Quarterly Review, March 2019, Available at SSRN: https://ssrn.com/abstract=3348185

Bryan Hardy (Contact Author)

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

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