Banks cut foreign loans in biggest fall in at least 30 years - - in the fourth quarter of 2008
Apr 30th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
After a relatively small change in total outstanding stocks in the third quarter, banks' external loans shrank by 5.4% in the fourth quarter of 2008 ($1.8 trillion at constant exchange rates), to $ 31 trillion. This was the largest reduction ever recorded in a single quarter, in at least 30 years. Claims denominated in US dollars and yen were down by 6% and 15%, respectively, and claims vis-à-vis non-banks declined by 8%, according to the Bank of International Settlements (BIS).