Featured statistic: EUR 11 billion
Date 8 August 2006
On 31 March 2006, Dutch banks’ claims on India stood at almost EUR 11 billion, a twelve-month increase by EUR 1.7 billion (or 18%). Lending to India has been showing an upward trend in recent years (see Chart) as a result of the expansive Indian economy and Dutch banks’ growing local network in that country.
Generally, the vast majority of loans to India are extended locally and in the local currency (63% on 31 March). In the past twelve months, growth in lending to India was entirely accounted for by these local credits (a 33% rise). Local credit is often preferred by banks in emerging economies and developing countries, as it enables them to use country-specific information and, hence, facilitates monitoring of outstanding loans.