BIS International Banking Statistics Q3 2025, Cross-Border Claims Expand to $45 Trillion Amid Dollar Credit Surge
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BIS International Banking Statistics Q3 2025
**Cross-Border Claims Expand to $45 Trillion Amid Dollar Credit Surge**
On January 29, 2026, the Bank for International Settlements (BIS) released its latest statistical update on international banking statistics and global liquidity indicators for end-September 2025. The report highlights a robust expansion in global cross-border banking activity, driven by strong lending to the United States and non-bank financial institutions (NBFIs). As a financial journalist, I’ll break down the key findings from the release, including regional trends and liquidity insights, and discuss their implications for global markets in a year of economic uncertainty.
The data is based on the BIS Locational Banking Statistics (LBS), which track cross-border claims on an exchange rate- and break-adjusted basis to provide a clear picture of banking flows.
## Global Cross-Border Claims Continue to Grow
Global cross-border bank claims expanded by **$832 billion** in Q3 2025, reaching a total of **$45 trillion**. This growth was predominantly in cross-border bank credit (loans and debt securities holdings), which increased by **$730 billion** — excluding derivatives and other claims.
The year-on-year (y-o-y) growth in cross-border bank credit was **10%**, boosted by strong dollar and euro-denominated lending. This expansion reflects resilient global financial conditions despite ongoing geopolitical tensions and interest rate volatility.
| Metric | Q3 2025 Change | Total Stock | Y-o-Y Growth |
|---|---|---|---|
| Cross-Border Claims | +$832 billion | $45 trillion | — |
| Cross-Border Bank Credit | +$730 billion | — | +10% |
**Insight**: The surge underscores banks’ confidence in developed market borrowers, particularly in the US, amid a weakening dollar that made USD lending more attractive.
## Key Drivers of Growth – US Borrowers and NBFIs Lead
The $730 billion increase in cross-border credit was led by lending to US borrowers (**$284 billion**). NBFIs were a major counterparty globally, with lending to them rising by **$157 billion** in the US alone.
This reflects NBFIs’ growing role in global finance, including hedge funds, investment vehicles, and fintech firms that rely on cross-border funding for leverage and operations.
| Borrower Type/Region | Increase ($ billion) | Key Note |
|---|---|---|
| US Borrowers | +284 | Led by NBFIs |
| NBFIs (Global) | Prominent | Especially in US (+157) |
| Predominantly Loans/Debt Securities | +730 total | Excludes derivatives |
**Insight**: The focus on NBFIs highlights the shift toward shadow banking, which could amplify systemic risks if unregulated flows reverse suddenly.
## Regional Trends – Mixed Performance in Emerging Markets
Cross-border bank credit to emerging markets showed divergent trends:
– **Emerging Asia**: Declined by 6% y-o-y, possibly due to tighter monetary conditions and reduced Chinese borrowing.
– **Emerging Europe**: +24% y-o-y, driven by energy and infrastructure lending.
– **Africa and Middle East**: +17% y-o-y, supported by commodity prices.
– **Latin America**: +6% y-o-y, with growth in Mexico and Brazil.
| Region | Y-o-Y Growth (%) | Key Factor |
|---|---|---|
| Emerging Asia | -6 | Tighter policy, reduced demand |
| Emerging Europe | +24 | Energy/infrastructure lending |
| Africa & Middle East | +17 | Commodity price support |
| Latin America | +6 | Growth in Mexico/Brazil |
**Insight**: The decline in Asia raises concerns for regional stability, as it may signal reduced investor appetite amid US rate hikes.
## Global Liquidity Indicators – Dollar Credit Leads Growth
BIS global liquidity indicators (GLIs) track foreign currency credit to non-banks. At end-Q3 2025:
– Dollar credit: +7% y-o-y, boosted by a weakening dollar.
– Euro credit: +11% y-o-y, reflecting ECB policy.
– Yen credit: -4% y-o-y, due to yen appreciation.
These trends indicate ample liquidity in major currencies, supporting cross-border lending.
| Currency | Y-o-Y Growth (%) | Driver |
|---|---|---|
| US Dollar | +7 | Weakening dollar |
| Euro | +11 | ECB easing |
| Yen | -4 | Yen appreciation |
**Insight**: Strong dollar credit growth could fuel asset bubbles, while yen contraction may pressure Japanese exporters.
## Implications for Global Markets and Policy in 2026
The expansion in cross-border claims signals confidence in the global recovery, but uneven regional trends highlight vulnerabilities. The US focus raises concerns about dollar dominance and potential spillovers from Fed policy. For EMs, the Asia decline could foreshadow tighter conditions.
Investors: Monitor NBFI flows for early risk signals. Policymakers: Enhance macroprudential tools to manage cross-border exposures.
The full report is available on the BIS website (bis.org).
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