Japan behind EM lending surge

BIS data showing Q1 spike in cross-border lending to emerging markets says as much about Japanese banks as it does about growth.
The Bank of International Settlements says Chinese borrowers accounted for $160 billion of new credit, most of that to Chinese banks.
The Bank of International Settlements says Chinese borrowers accounted for $160 billion of new credit, most of that to Chinese banks.

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.

¬ Haymarket Media Limited. All rights reserved.

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