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

February 8, 2016

EM bank lending conditions continued to tighten sharply in 2015Q4, though at a slightly more moderate pace relative to the acute conditions observed in the previous quarter. Banks witnessed a further deterioration in funding conditions and increases in NPLs. By region, Latin America, MENA & Sub-Saharan Africa witnessed a further tightening in lending conditions.

November 5, 2015

EM bank lending conditions tightened to their weakest level since 2011Q4 in 2015Q3 led by both demand and supply side factors. Banks witnessed a significant rise in NPLs and deterioration in domestic and external funding conditions, and loan credit standards were tightened sharply. In addition, loan demand plunged and trade finance conditions worsened.

August 6, 2015

EM bank lending conditions continued to tighten in 2015Q2, albeit at a more moderate pace. While loan demand picked up, bank funding conditions worsened and nonperforming loans accelerated, leading banks to continue tightening credit standards for new loans.

April 30, 2015

EM bank lending conditions tightened abruptly to their weakest level in three years in 2015Q1. The main driver was a plunge in loan demand, led by EM Europe and EM Asia. In addition, funding conditions continued to tighten, in part driven by a sharp deterioration in access to external funding in Latin America and Sub-Saharan Africa. Meanwhile, nonperforming loans maintained their upward trend, especially in EM Asia and Latin America, causing banks to continue tightening credit standards for new loans.

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.

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.

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.

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.

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.

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.