The September 2013 quarterly review by the Bank of International Settlements highlighted soaring cross-border lending to emerging markets, suggesting the economic growth story for these countries is on track, albeit at a gentler pace. However, the flows may be as much about Japan, Abenomics and the retreat of European banks as it is about growth prospects in China, Brazil and elsewhere.
The quarter saw cross-border lending to emerging markets total $267 billion, an increase of 8.4% quarter-on-quarter. This is a record, according to BIS, led by interbank lending as opposed to loans from non-bank entities banks in Asian offshore centres accounted for $93 billion of that.
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