Washington, D.C., July 30, 2014 - Bank lending conditions in emerging economies eased in 2014Q2, according to the latest Emerging Markets Bank Lending Conditions Survey from the Institute of International Finance.

"Overall lending conditions in emerging markets eased for the first time since early 2013," said Charles Collyns, chief economist for the IIF. "This primarily reflects better bank funding conditions, helped by increased risk appetite in financial markets, consistent with our recent portfolio flows tracker."

The composite index of the IIF's Survey increased 2 points to 50.2 in 2014Q2. A value above 50 indicates improving lending conditions.

Both domestic and international funding conditions improved after being tightened sharply since 2013Q2 when market became concerned about the path of the Federal Reserve's exit from quantitative easing. Many emerging markets are benefiting from a recovery in mature economies which has improved conditions for trade finance.

Nonperforming loans continued to increase, a trend that banks expect to extend into 2014Q3 according to the survey. The IIF noted that this may explain the continued tightening in credit standards for loans, a trend that has persisted since 2011Q1.

Emerging Europe saw a significant improvement in bank lending conditions while Latin America saw bank lending conditions deteriorate further. Emerging Asia continued to see the sharpest tightening in bank lending conditions.

For more information on the Survey, visit http://www.iif.com/emr/global/emls/.

The Institute of International Finance is the global association of the financial industry, with close to 500 members from 70 countries. Its mission is to support the financial industry in the prudent management of risks; to develop sound industry practices; and to advocate for regulatory, financial and economic policies that are in the broad interests of its members and foster global financial stability and sustainable economic growth. Within its membership IIF counts commercial and investment banks, asset managers, insurance companies, sovereign wealth funds, hedge funds, central banks and development banks. For more information visit www.iif.com.