More bank loans point to a credit recovery
By Bradley S. Klapper |
July 22, 2010, Thursday
|
Print Edition
Print Edition
WORLD credit markets are recovering from the global recession as banks cautiously increase lending, data from the Bank for International Settlements indicated yesterday.
International banking loans climbed 2 percent from January to March, with financial institutions taking on US$700 billion in new foreign exposure, said the institution, which coordinates activity among the world's central banks.
It said United States and British banks were leading the way, providing nearly half the new loans. That could indicate renewed strength among lenders from the two financial centers - even if some of the upswing probably reflected major banks shifting assets among offshore subsidiaries.
But the collective data clearly shows the start of a nascent turnaround, after the September 2008 stock market collapses caused international banking to contract by 11 percent, or US$3.4 trillion.
The BIS said US banks added US$212 billion in foreign exposure in the first quarter of 2010. Most of the increase reflected banks investing in other banks or their own branches in the Bahamas, Canada and the UK.
Britain's rebound was somewhat similar, with new foreign loans going primarily to other banks in Europe and Japan. Only 40 percent of its US$177 billion in new claims went to individuals, corporations and other non-bank borrowers, mostly in the US and France.
International banking loans climbed 2 percent from January to March, with financial institutions taking on US$700 billion in new foreign exposure, said the institution, which coordinates activity among the world's central banks.
It said United States and British banks were leading the way, providing nearly half the new loans. That could indicate renewed strength among lenders from the two financial centers - even if some of the upswing probably reflected major banks shifting assets among offshore subsidiaries.
But the collective data clearly shows the start of a nascent turnaround, after the September 2008 stock market collapses caused international banking to contract by 11 percent, or US$3.4 trillion.
The BIS said US banks added US$212 billion in foreign exposure in the first quarter of 2010. Most of the increase reflected banks investing in other banks or their own branches in the Bahamas, Canada and the UK.
Britain's rebound was somewhat similar, with new foreign loans going primarily to other banks in Europe and Japan. Only 40 percent of its US$177 billion in new claims went to individuals, corporations and other non-bank borrowers, mostly in the US and France.
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