The Bank for International Settlements (BIS) published banking and global liquidity statistics showing that cross-border bank credit reached USD 40.7 trillion at end-June 2026, up 11% from a year earlier. Credit to emerging market and developing economies (EMDEs) expanded by 8.9% annually, although growth varied across regions. The euro also continued to gain share in foreign currency credit to nonbank borrowers, covering both bank loans and international debt securities. Cross-border bank credit increased by USD 877 billion in the second quarter, adjusted for exchange rate movements and breaks in the data. Loans contributed USD 560 billion and banks’ holdings of debt securities USD 317 billion. Credit denominated in euros accounted for almost half the quarterly expansion, compared with USD 383 billion for credit in US dollars. EMDE borrowers received an additional USD 105 billion during the quarter. Annual growth reached 19% in emerging Europe and 17% in Africa and the Middle East, followed by 9.3% in Latin America and the Caribbean. Emerging Asia remained in contraction, down 2.9% annually despite a quarterly increase of USD 25 billion. In the broader foreign currency credit measure, covering nonbank borrowers outside the respective currency areas, credit denominated in euros grew faster than credit in US dollars or Japanese yen. International debt securities denominated in euros expanded by 13% annually, compared with 6.7% for those in US dollars. Bank loans denominated in euros have also outpaced their dollar counterparts since the third quarter of 2024. The euro’s share of foreign currency credit has increased since 2022 at both current and constant exchange rates. Among EMDE borrowers, that share rose for bank loans but remained relatively stable for international debt securities.
BIS reports 11% growth in cross-border bank credit and a rising euro share of foreign currency credit
BIS data put cross-border bank credit at USD 40.7 trillion at end-June 2026, an annual increase of 11%. Credit to emerging market and developing economies rose 8.9%, with emerging Europe leading growth while emerging Asia continued to contract annually. The euro gained share in foreign currency loans and international debt securities, with securities denominated in euros growing 13% annually against 6.7% for those in US dollars.