ECONOMIC RESEARCH

Emerging Markets Bank Lending Conditions Survey - 2011Q3

October 21, 2011

The current grim mood on economic recovery has not spared emerging market banks. After declining in the two previous quarters, the overall lending conditions index, which is a simple average of the diffusion indices resulting from all 14 questions in our survey, fell 3.9-pt to 49.1 in the third quarter of 2011. The most significant deterioration has occurred in funding conditions facing banks in emerging economies. While local funding conditions are broadly unchanged over the past three months, funding conditions in international markets have deteriorated significantly and across all major regions.