BIS global liquidity indicators at end-September 2025

Key takeaways

  • The BIS global liquidity indicators show that foreign currency credit in dollars grew by 7% year on year at end-Q3 2025 on the back of a weakening dollar. Foreign currency credit in euros grew 11% while that in yen contracted by 4%.

The BIS global liquidity indicators (GLIs) track total credit to non-bank borrowers, covering both loans extended by banks and funding from international bond markets.3 The latter is captured through the net issuance (gross issuance less redemptions) of international debt securities (IDS). The focus is on foreign currency credit denominated in the three major reserve currencies (US dollar, euro and Japanese yen) to non-residents, ie borrowers outside the respective currency areas.

Dollar credit outside the United States continued to grow through end-Q3 2025, on the back of a weaker dollar. At that point, the year-on-year growth rate stood at 7% for dollar-denominated credit, while the dollar continued its 2025 depreciation (Graph 5.A).

Euro credit outside the euro area also grew robustly, while yen credit contracted. Euro-denominated credit grew 11% year on year at end-Q3 2025, continuing a streak of positive growth rates extending back to Q1 2013 (Graph 5.B). In contrast, yen credit outside Japan declined by 4% year on year, coming down from high growth in recent years.

The latest growth in dollar credit outside the United States reflects significant credit from bank loans alongside bonds. Dollar credit stood at $14 trillion at end-Q3 2025, with 55% in the form of debt securities (Graph 6.A). The share of debt securities had been steadily rising after the Great Financial Crisis, but has held steady since 2022 as credit via bank loans matched its pace.4 The picture for dollar credit to EMDEs looks similar, with credit standing just over $4 trillion and the debt securities share levelling off towards 55% (Graph 6.B).5

Annex graphs

3  The GLIs cover total foreign currency credit denominated in US dollars, euros or Japanese yen, which includes loans from banks plus outstanding international bonds. This is broader than the bank credit covered in previous sections, which captures banks loans and their holdings of debt securities.

4  The rising share of debt securities post-2008 is a feature of the second phase of global liquidity (H S Shin, The second phase of global liquidity and its impact on emerging economies , keynote address at the San Francisco Federal Reserve Asia Economic Policy Conference, 4 November 2013. See Hardy and von Peter, Global liquidity: a new phase? , BIS Quarterly Review, December 2023, pp 21 31 for a discussion of the different phases of global liquidity and their features.

5  The updated country classification (see    here) reclassified several EMDEs as advanced economies. Consequently, the new global liquidity aggregate for dollar credit to EMDEs is lower than the amounts shown previously (eg $5.3 trillion at end-Q2 2025).