The Bank for International Settlements published a BIS Quarterly Review primer on using its international debt securities and banking statistics to analyse offshore financial activity by looking through residence to the nationality of the ultimate parent. The article argues that this nationality view helps identify who ultimately borrows and lends through financial centres, improving the monitoring of vulnerabilities and international spillovers that can be obscured in conventional residence-based data. Using BIS international debt securities and international banking statistics, the paper estimates that of USD 33 trillion in international bonds outstanding at end-Q3 2025, almost USD 11 trillion, or 31%, was issued by affiliates located outside their parents’ home country, with issuance heavily concentrated in cross-border financial centres such as the Cayman Islands, Ireland and Luxembourg. Non-financial corporations are shown to rely heavily on non-bank financial institution affiliates for issuance, including USD 2.6 trillion, or 41%, of USD 6.4 trillion for advanced-economy headquartered corporates and USD 0.7 trillion, or 48%, of USD 1.5 trillion for emerging market economy headquartered corporates. On bank intermediation, offshore affiliates in financial centres account for over 40% of global cross-border bank lending, and the nationality perspective can materially change the apparent creditor base for specific borrowers, including cases where a substantial share of cross-border credit is extended by banks headquartered in the borrower country but booked through offshore offices. The article concludes that key gaps remain because comparable nationality-based official statistics are lacking for portfolio investment and foreign direct investment, which limits the ability to trace offshore activity and ultimate ownership or control for non-bank financial institutions operating through financial centres.
Bank for International Settlements 2026-03-16
Bank for International Settlements research shows offshore affiliates account for nearly USD 11 trillion of international bond issuance and over 40% of cross-border bank lending
The BIS Quarterly Review advocates a nationality-based approach to analysing offshore financial activity, enhancing monitoring of vulnerabilities and spillovers. It estimates USD 11 trillion of USD 33 trillion in international bonds were issued by affiliates outside their parent country, notably in financial centres like the Cayman Islands, Ireland, and Luxembourg. It highlights gaps in nationality-based statistics for portfolio and foreign direct investment, limiting tracing of offshore activity and ownership.