International banking activity amidst the turmoil

The recent period of financial turmoil has had a significant impact on banks' global balance sheet positions. This piece uses the BIS international banking statistics to trace the longer-term developments in the interbank market which contributed to the funding difficulties experienced during the turbulence. It concludes with an analysis of banks' bilateral interbank exposures, at the level of national banking systems, and discusses the emerging signs of a credit contraction.

JEL classification: F34, G15, G21.