Banks' cross-border claims rose by $1.4 trillion over the first quarter of 2022, the third largest quarterly expansion on record. Even on a seasonally adjusted basis, the expansion was unusual (+$700 billion), booked mostly vis-à-vis advanced economies (AEs).

Banks' cross-border claims on EMDEs changed little overall over Q1 2022, as a drop in claims on China offset an increase vis-à-vis other emerging market and developing economies (EMDEs). Banks' exposures to counterparties in Russia and Ukraine declined significantly.

Growth in foreign currency credit (loans and bonds) to non-bank borrowers slowed in dollars but expanded in euros. Foreign currency credit to EMDEs remained resilient.

Against the backdrop of rising interest rates and geopolitical tensions, partial data on issuance of syndicated loans and bonds foreshadow weaker growth in credit to EMDEs in Q2 2022.