BIS reports 7% dollar, 11% euro credit growth in Q3 2025
The Bank for International Settlements (BIS) reported that foreign currency credit in dollars grew by 7 percent year-on-year at end-Q3 2025. Euro-denominated credit increased by 11 percent, while yen credit contracted by 4 percent.
Dollar credit expands amid weakening currency
The BIS global liquidity indicators (GLIs) track total foreign currency credit to non-bank borrowers, encompassing both bank loans and international bond market funding.
Dollar-denominated credit outside the United States continued its growth trajectory through end-Q3 2025, reaching $14 trillion.
This 7 percent year-on-year expansion occurred against a backdrop of a weakening dollar throughout 2025. Debt securities constituted 55 percent of this dollar credit, a share that has remained stable since 2022 after a steady rise following the Great Financial Crisis.
The latest growth reflects significant contributions from both bank loans and bonds, matching each other's pace.
For emerging market and developing economies (EMDEs), dollar credit stood just over $4 trillion, with the debt securities share also levelling off towards 55 percent.
Divergent trends in euro and yen credit
Euro-denominated credit outside the euro area also demonstrated robust growth, increasing by 11 percent year-on-year at end-Q3 2025. This marks a continuation of positive growth rates observed consistently since the first quarter of 2013. In contrast, yen-denominated credit outside Japan experienced a contraction, declining by 4 percent year-on-year.
This reduction follows a period of high growth in recent years for yen credit.
The GLIs specifically focus on foreign currency credit denominated in the three major reserve currencies – US dollar, euro, and Japanese yen – extended to non-residents, meaning borrowers located outside their respective currency areas.