Non-Bank Counterparties in International Banking

Abstract

The BIS has expanded the details that it publishes about banks' balance sheet linkages with nonbank counterparties. These additional details show that banks have increasingly large positions vis-à-vis the non-bank financial sector. Their exposures to non-financial counterparties are highly concentrated, mainly in holdings of advanced economy government debt. At the same time, banks lend significant amounts to non-financial corporations located in financial centres. Banks' cross-border claims on households are relatively small, while their cross-border liabilities to this sector reflect non-resident nationals making deposits with banks in their home country.

JEL Classification: C82, F30, G21, G23