International lending shows smallest growth in 13 years: BIS

Cross-border lending saw its smallest growth in 13 years in the third quarter of 2012, AFP reports according to a report published Sunday by the Bank for International Settlements (BIS).Between June and September last year, the cross-border lending of banks that report to BIS rose by just $33 billion, or 0.1 percent, from the previous quarter.The BIS, which is sometimes dubbed the central bank of central banks, explained in its quarterly report that the modest increase was driven by lending to non-banks, especially in dollars, British pounds and non-major currencies, which rose by $153 billion, or 1.4 percent.That positive development was however countered by a fall of $120 billion, or 0.7 percent, in cross-border lending to banks."Claims denominated in euros fell the most, by $127 billion," or 3.6 percent, BIS said.In its report, the BIS meanwhile noted that cross-border lending had picked up slightly in developed economies, after three consecutive years of contracting.Britain and the non-banking sector in the United States saw the biggest boost, while international lending shrank in nearly every country within the crisis-hit eurozone.The BIS also pointed out in a statement that "strong demand from foreign investors led to a surge of activity in emerging corporate bond markets in 2012 and early 2013."It said that statistics on international debt securities showed that the stock of both financial and non-financial companies headquartered in emerging economies ran to more than $1.6 trillion by the end of last year.