Banks’ cross-border exposures to shadow banks surged in Q1

Liabilities owed to overseas non-bank financial institutions (NBFIs) by lenders leapt $779 billion over the first three months of 2020 – three times the average first quarter amount since 2015 – as the coronavirus crisis sparked a dash for cash across the shadow banking sector.

Data parsed by the Bank for International Settlements (BIS) shows the majority of the growth in cross-border NBFI liabilities was to US-based firms. Having shrunk $60.6 billion in Q4 2019, these increased a whopping $267