MANILA, Philippines - The Bank for International Settlement (BIS) has released an updated set of indicators of global liquidity, which are intended as measures of the ease of financing in global financial markets.
The latest global liquidity indicators, which cover data through September 2014, highlight the following developments: As banking systems recover, and with risk appetites remaining strong, bank lending has strengthened as a channel for global liquidity, alongside persistently high volumes of global bond market issuance.
The historical pattern where low levels of volatility coincide with a rapid growth of cross-border banking flows may be starting to reassert itself.
At end-September 2014, credit in US dollars to non-bank borrowers outside the United States totaled $9.2 trillion, an increase of 9.2 percent over a year earlier.
This represents an increase of over 50 percent since end-2009.
The total comprised $4.2 trillion of debt securities and $4.9 trillion of bank loans.
Long-term debt issuance continues to be supported by extraordinarily low long-term yields, which for some sovereigns are now negative for a significant portion of the yield curve.
Cross-border bank credit continues to grow especially rapidly in Asia.
Within the euro area, a small increase in cross-border bank credit signals the progressive reintegration of the European banking system in the wake of the 2011-12 sovereign debt crisis.