BIS reports global cross-border bank claims reach $45 trillion
Global cross-border bank claims expanded by $832 billion in the third quarter of 2025, reaching $45 trillion, the Bank for International Settlements (BIS) reported. Lending to borrowers in the United States and non-bank financial institutions drove the increase.
Cross-border credit surges, NBFIs lead the way
The BIS locational banking statistics show a substantial $832 billion expansion in banks' global cross-border claims in Q3 2025, pushing the total stock to $45 trillion.
This increase was predominantly driven by cross-border bank credit, which rose by $730 billion.
Lending to borrowers in the United States expanded by $284 billion, while non-bank financial institutions (NBFIs) were a prominent counterparty globally, especially those in the United States, receiving $157 billion.
Overall, cross-border bank credit grew by 10 percent year-on-year at the end of Q3 2025, boosted by strong growth in dollar and euro credit.
Divergent regional and currency trends
Cross-border bank credit to emerging Asia declined by 6 percent year-on-year in Q3 2025, primarily due to a $48 billion contraction in China.
In contrast, emerging Europe saw a 24 percent expansion, Africa and the Middle East grew by 17 percent, and Latin America by 6 percent.
The BIS global liquidity indicators also showed varied foreign currency credit dynamics.
Dollar-denominated credit outside the United States grew by 7 percent year-on-year, while euro-denominated credit increased by 11 percent.
Yen credit outside Japan, however, contracted by 4 percent.
NBFIs: A growing, unallocated risk
The sustained growth in cross-border bank credit, particularly to non-bank financial institutions (NBFIs), highlights a potential area of systemic vulnerability.
While overall bank resilience is often emphasized, the increasing reliance on less regulated non-bank entities warrants closer scrutiny.
This trend could amplify financial shocks, especially given the significant concentration in US NBFIs, posing challenges for financial stability oversight.