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Emerging markets' reliance on foreign bank credit

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  • Bryan Hardy

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.

Suggested Citation

  • Bryan Hardy, 2019. "Emerging markets' reliance on foreign bank credit," BIS Quarterly Review, Bank for International Settlements, March.
  • Handle: RePEc:bis:bisqtr:1903b
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    References listed on IDEAS

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    Cited by:

    1. Stefan Avdjiev & Patrick McGuire & Goetz von Peter, 2020. "International dimensions of EME corporate debt," BIS Quarterly Review, Bank for International Settlements, June.
    2. Pablo Garcia Luna & Bryan Hardy, 2019. "Non-bank counterparties in international banking," BIS Quarterly Review, Bank for International Settlements, September.

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    More about this item

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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