Cross-border bank credit grows 11 percent to $39.5 trillion
Global cross-border bank credit expanded 11 percent year-on-year to $39.5 trillion at the end of March 2026. The $1.7 trillion quarterly increase was driven by strong lending to non-bank financial institutions and a surge in euro-denominated debt.
Broad expansion across non-banks and offshore hubs
Cross-border bank claims rose by $2.1 trillion in the first quarter of 2026 to reach an outstanding total of $47.6 trillion.
Total cross-border credit grew by $1.7 trillion, sustaining strong post-2025 momentum.
Credit to non-bank financial institutions surged by $651 billion, centered heavily in major financial centers including the United Kingdom, the United States, and the Cayman Islands.
Bank-to-bank credit also picked up sharply, increasing by $632 billion to record an annual growth rate of 11 percent, the fastest expansion rate since the onset of the Covid-19 pandemic.
Emerging market credit expanded by $148 billion, led by inflows into Africa, the Middle East, and emerging European countries such as Poland and Hungary.
Euros gain ground in foreign currency credit
Dollar and euro foreign currency credit grew robustly, rising by 7.3 percent and 12 percent year-on-year, respectively.
Total outstanding dollar-denominated foreign currency debt reached $14.7 trillion, while euro-denominated debt reached €5.1 trillion at end-March 2026.
Although dollar debt remains dominant globally, the euro's share in total foreign currency credit has steadily expanded from 22 percent in late 2022 to 28 percent.
This shift highlights a growing structural role for euro-denominated borrowing in global cross-border funding markets.
Lending surge masks non-bank risks
The double-digit surge in global credit underlines strong offshore risk appetite.
Yet concentrated lending to non-bank financial entities creates hidden contagion risks.
Without stricter oversight, these growing non-bank exposures threaten market stability.