World’s banks tighten up lending levels, says BIS
THE world’s banks lent $6 trillion (£3.6 trillion) less in the year to March than they did in the previous year, the Bank of International Settlements (BIS) said yesterday.
Total lending worldwide shrank by $1.5 trillion, or over 4 per cent, in the first quarter of this year at current exchange rates, BIS said.
However, the pace of contraction began to slow after a record $1.9 trillion fall in the availability of lending in the fourth quarter of last year, and was attributed largely to currency fluctuations.
Excluding the weakening of currencies such as the euro against the US dollar, lending fell by $700bn in the first quarter, bringing the total contraction for the year to the end of March to $3.3 trillion.
Cross-border lending fell to $29.4 trillion at the end of March, down from $35.8 trillion at the end of March 2008, also largely due to the strength of the dollar.