Preliminary international banking statistics, third quarter 2010

January 2011

Statistical commentary on preliminary locational and consolidated banking statistics at end-September 2010 (PDF, 14 pages, 82 kb)

In the third quarter of 2010, BIS reporting banks' claims on other countries rose by $624 billion (+2.2%) following an increase of only 0.1% ($10 billion) in the second quarter. In contrast to the previous quarters, activity was more robust vis-à-vis counterparties in developed countries, while external loans to banks in emerging economies and offshore centres continued to grow. A reversal in the currency of denomination occurred in the quarter under review with the US dollar attracting most of the new business to the detriment of the euro. Local claims in foreign currencies to residents in reporting countries also increased significantly.

At constant exchange rates, consolidated international claims increased by 2.9% in the third quarter of 2010. Local claims of banks' foreign offices (which are reported only in the consolidated statistics) surged on a nominal basis. However, this was entirely the effect of local currencies strengthening against the dollar, as exchange rate adjusted local currency claims declined by 1.1% or $118 billion.

On an ultimate risk basis, which adjusts for net risk transfers across borrowing countries, the shifts in exposure to the bank sector continued in the third quarter of 2010 in developed countries and offshore banking centres.

Data for the third quarter of 2010 are preliminary. Final data, with a detailed analysis of recent trends, will be published in the forthcoming BIS Quarterly Review, to be released on 14 March 2011.