In order to monitor the financial stability of emerging markets, the IIF conducts a quarterly survey of bank lending. The Emerging Markets Bank Lending Conditions Survey is addressed to Senior Loan Officers, Chief Credit Officers or other senior officers in comparable positions from banks based in emerging market countries. The survey, begun in December 2009, is carried out using a questionnaire containing fourteen multiple-choice questions. The questions address five different topics: credit standards, demand for loans, funding conditions, trade finance and nonperforming loans.
In the first quarter of 2011 we increased the number of banks we asked to participate from the original 35 banks composing the IIF Emerging Markets Advisory Council to the entire IIF emerging market membership.
EM Bank Lending Conditions Survey Publications
April 25, 2013
The latest survey, conducted by the IIF between March 12 and April 16, 2013, pointed to continued overall improvement in bank lending conditions in 2013Q1. Funding conditions—especially in domestic markets—continued to ease in emerging markets, partly reflecting the monetary policy easing in key emerging market economies. However, the pass-through of this improvement to credit standards in some EM banks has been weak.Read More
January 30, 2013
The composite index of the IIF’s Emerging Markets Bank Lending Conditions (EMLC) Survey increased to 50.5 in 2012Q4, and is now pointing to the first overall improvement in bank lending conditions since 2011Q2. Based upon inputs received from 141 banks domiciled in emerging economies, the results showed a significant easing in funding conditions. However, credit conditions continued to tighten as the increase in non-performing loans still remains a concern.Read More
November 14, 2012
The latest round of bank lending surveys conducted by the ECB, Fed, BoJ, and IIF revealed significant differences in bank lending conditions across the G3 and Emerging Markets. During 2012Q3, bank credit standards tightened in the Euro Area and Emerging Markets, but eased in the U.S. and Japan. Weak sentiment in the Euro Area continued to weigh heavily on demand for loans and prompted banks to tighten credit standards despite an improvement in bank liquidity positions.Read More
October 13, 2012
The composite index of the IIF’s Emerging Markets Bank Lending Conditions (EMLC) Survey improved to a five-quarter high of 49.9 in 2012Q3, showing that overall bank lending conditions were broadly stable in Q3. Encouragingly, the funding strains (both local and international) of the past year have moderated significantly over the last few months and now have eased for the first time since 2010Q4. Developments were most encouraging in Emerging EUROPE, where banks reported the largest improvement in international funding conditions, suggesting that the ECB’s most recent announcement of Outright Monetary Transactions (OMTs) helped facilitate some banks’ access to international sources of funding.Read More
July 27, 2012
The ECB’s latest Euro Area Bank Lending Survey showed that credit standards in the Euro Area continued to tighten in the second quarter of 2012. The pace of credit tightening was notably much lower than in the fourth quarter of 2011, but marginally higher than the first quarter of 2011. These results were broadly in line with the findings of the IIF’s Emerging Market Bank Lending Conditions Survey, which has revealed a further tightening in credit standards across all emerging regions in Q2.Read More
July 20, 2012
The new survey conducted by the Institute of International Finance in June pointed to a net deterioration in overall emerging market bank lending conditions for a fourth straight quarter. Around 48% of the respondents indicated a tightening in international funding conditions, suggesting that the positive effect of the policy measures taken by the ECB in end-December and February have started to fade over the last quarter. Based upon inputs received from 132 banks domiciled in emerging economies, the results show a significant rise in non-performing loans — a trend that is expected to persist in the months ahead.
Credit standards continued to tighten over the past quarter as banks become more cautious in their lending activities. The tightening in credit standards was more pronounced in Emerging ASIA.Read More
April 09, 2012
The IIF index of emerging market bank lending conditions (EMLC) remained below 50 (implying an overall deterioration) for the third consecutive quarter. That said, however, the global EMLC index recovered most of the previous quarter’s drop, rising 48.6, from 44.7 in 2011Q4 and 49.1 in 2011Q3. This change was mainly the result of funding conditions, which tightened somewhat further in 2012Q1, but by nowhere near the amount recorded in 2011Q4. This highlights the fact that policy measures taken by central banks in both emerging and, especially, in mature economies in recent months (especially by the ECB) have helped stem the deterioration.Read More