Highlights of the BIS international statistics

BIS reporting banks cut their cross-border claims during the fourth quarter of 2012, after little change in the previous quarter. A sharp reduction in cross-border interbank lending more than offset higher cross-border credit to non-bank borrowers. Across all reporting areas, banks curbed their cross-border exposure to advanced economies but increased it to emerging market economies and offshore financial centres.

Notional amounts outstanding of over-the-counter (OTC) derivatives remained stable in the second half of 2012 owing to several offsetting factors. Accelerating compression of trades with central counterparties pushed down the outstanding notional amount of interest rate swaps, but this was offset by higher amounts outstanding of forward rate agreements as bilateral contracts between reporting dealers were replaced with contracts between dealers and a central clearing counterparty.