BIS Quarterly Review September 2013 – International banking and financial market developments

by Sabrina I. Pacifici on September 17, 2013

September 2013 Quarterly Review: Markets precipitate tightening, 15 September 2013

  • “Higher yields in advanced economies generated serious tremors in emerging markets.
  • Cross-border claims of BIS reporting banks were broadly stable in the first quarter of 2013. Banks redirected lending from the advanced economies to emerging markets, especially to China, Brazil and Russia.
  • Japanese banks returned as the world’s largest providers of cross-border credit, a position they had lost in the aftermath of the crisis in the 1990s.
  • Corporations from emerging markets have overtaken firms from the advanced economies as the largest group of issuers of corporate debt securities in offshore financial centres.
  • Benjamin Cohen (BIS) finds that large banks raised their capital ratios mainly by increasing retained earnings rather than by reducing their assets or loan books.
  • Stefan Avdjiev, Anastasia Kartasheva and Bilyana Bogdanova (BIS) discuss the structure of contingent convertible capital instruments (CoCos) and analyse the evolution of the market.
  • Anamaria Illes and Marco Lombardi (BIS) show that in many countries the difference between lending and policy rates remains well above its pre-crisis level.
  • There is no aggregate collateral shortage, argue Ingo Fender and Ulf Lewrick (BIS), although collateral may be distributed unevenly.
  • A database on monetary and prudential measures aimed at moderating housing booms and busts is presented by Ilhyock Shim, Bilyana Bogdanova, Jimmy Shek and Agne Subelyte (BIS).”

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