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.