BIS Quarterly Review, November 1996

BIS Quarterly Review  | 
28 November 1996


This commentary on recent developments in international banking, securities and global derivatives markets is based on partial information available for the third quarter of 1996 and on more detailed banking data for the second quarter. It is divided into five parts. Part I provides an overview of the main underlying trends that appear to have emerged in recent months in international financial markets. Part II deals with the international banking market, using information on syndicated loan facilities for the third quarter of 1996 and the more detailed BIS international banking statistics, which are available up to end-June. It includes (in Appendix 1) a summary of a recent document published under the auspices of the BIS on issues raised by the development of electronic money. Part III reviews developments in international securities markets in the third quarter of 1996 and provides (in Appendix 2) a brief assessment of the importance of repurchase agreements (repos) in the international financial markets. Part IV covers activity in derivative instruments, both those traded on exchanges, for which comprehensive up-to-date statistics are available, and over-the-counter instruments. It also includes (in Appendix 3) a survey of developments in the swap market during 1995, for which detailed data were recently made available. Finally, Part V puts the recent rise in international asset-backed securities issuance into perspective, particularly in relation to the internationalisation of US borrowers' financing.