(46) Featured statistic: EUR 31 billion

Date 19 September 2006

Dutch banks are highly active in foreign lending.

Grafiek Vorderingen

In recent years, the increase of credit extended by overseas banking establishments to local counterparties has been especially strong. Thus in the first quarter of 2006, local claims (in local currency) on borrowers in Latin America and the Caribbean came out at EUR 31 billion.

The chart below clearly shows that local lending to Latin-America and the Caribbean has grown rapidly these past few years. While just three years ago, local claims ran to only 30% of total lending to this region, their share now comes up to half of total lending, on a level with cross-border claims.

Local lending by foreign banks in emerging economies and developing countries is popular because it provides banks with country-specific information, which helps them monitor their loans outstanding.