In order to assess bank lending conditions in emerging markets, the IIF conducts a quarterly survey among banks based in five emerging market regions: Emerging Asia, Latin America, Emerging Europe, Middle East & North Africa and Sub-Saharan Africa. The Survey is addressed to Senior Loan Officers, Chief Credit Officers, Credit Risk Officers or other senior officers in comparable positions. The survey, which began in December 2009, is carried out using a questionnaire containing fourteen multiple-choice questions that address five different topics on bank lending: 1) Credit standards for business, consumer and real estate loans; 2) Demand for business, consumer and real estate loans; 3) Domestic and international funding conditions; 4) Demand and supply conditions for trade finance; and 5) The evolution of nonperforming loans. The survey responses for each question is converted into a diffusion index for all regions. The survey results are published in January, April, July and October and are used extensively by the financial industry. For any questions about the survey, please contact Arpitha Bykere.

Documents & Resources

Publication
January 22, 2015

EM bank lending conditions remained in tightening territory in 2014Q4 as better news on the demand side was offset by weaker supply side factors. On the positive side, loan demand accelerated, particularly in EM Europe, and the rise in nonperforming loans moderated somewhat. However, funding conditions deteriorated markedly, particularly in EM Europe and EM Asia, and the supply of trade finance slowed.

Publication
October 30, 2014

EM bank lending conditions tightened slightly in 2014Q3 after having improved in 2014Q2. The tightening was driven by a significant increase in nonperforming loans, notably in EM Europe. Moreover, the marked improvement witnessed in loan demand, funding conditions and trade finance in 2014Q2 waned somewhat. In particular, loan demand slumped in EM Asia. Credit standards continued to be tightened, but at a relatively slower pace, largely driven by EM Asia.

Publication
July 30, 2014

EM bank lending conditions eased in 2014Q2 for the first time since early 2013. Banks reported a marked improvement in funding conditions and expansion in loan demand amidst increased risk appetite in global financial markets and some recovery in EM growth. However, banks kept tightening credit standards as nonperforming loans continued to rise.

Publication
April 30, 2014

Bank lending conditions in emerging economies deteriorated in 2014Q1, as the overall IIF EM Bank Lending Conditions index dipped to its lowest level since 2011Q4. The deterioration reflected mainly weaker economic performance, as demand for loans declined and that for trade finance slowed, while nonperforming loans rose. On the supply side, banks continued to tighten credit standards for loans at about the same pace as in the previous quarter, as funding conditions were little changed.

Publication
February 5, 2014

The IIF EM Bank Lending Conditions index picked up in 2013Q4 but still signaled a tightening in bank lending conditions in emerging economies, though at a lower pace. Contributing to the improvement, the deterioration in domestic and international funding conditions during the summer of 2013 moderated somewhat and nonperforming loans began to stabilize. Moreover, loan demand and demand and supply of trade finance continued to improve. Yet, banks continued to tighten credit standards.

Publication
October 24, 2013

IIF’s Emerging Markets Bank Lending Conditions Index declined further in 2013Q3, indicating that overall bank lending conditions continued to tighten in emerging economies for the second quarter in a row. Amidst the retrenchment in capital flows, banks in all regions witnessed a significant deterioration in funding conditions and tightened credit standards further.

Publication
July 24, 2013

The IIF’s Emerging Markets Bank Lending Conditions Index fell for the first time since 2011Q4 and stood slightly below the 50 mark in 2013Q2, suggesting that overall bank lending conditions tightened after having improved in recent quarters. This is primarily due to a worsening in funding conditions index as international funding conditions tightened in Emerging Asia and Emerging Europe and domestic funding conditions deteriorated mainly in Latin America and Emerging Asia. Overall lending conditions tightened in Latin America and Emerging Asia while those in Emerging Europe, Africa and the Middle-East continued to improve. Banks witnessed a faster rise in nonperforming loans and continued to tighten credit standards.

Publication
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.

Publication
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.