From the BIS, preliminary locational and consolidated banking statistics, Q1-2009:
After a sharp drop of 5.7% ($1.9 trillion) in the previous quarter, banks’ external claims declined at a slower pace in the first quarter of 2009 – by 2.3% ($0.7 trillion) – to $29.4 trillion (at quarterly constant exchange rates). Claims denominated in yen shrank 15% ($205 billion), of which $137 billion represented claims on other banks. Interbank claims denominated in US dollars and euros were also down by 2% ($150 billion) and 3% ($264 billion). In comparison, external claims on the non-bank sector declined by only 1% ($149 billion).
International consolidated claims of BIS reporting banks (at current exchange rates) were influenced by countervailing effects in this quarter: an expanded reporting population in the US, exchange rate movements and net changes in credit. Excluding the effects of the larger reporting population and of currency movements, foreign banks’ local claims in local currencies decreased by only 0.7% ($75 billion), mostly in the United States, Luxembourg and Germany. The share of long-term claims increased by 1 percentage point. Due to market conditions, the positive market value of derivatives claims in banks’ trading book declined by 15% ($1.1 trillion), partially reversing the substantial increase in the fourth quarter of 2008.
Well, I’d hope that 23 trillion(ish) of fed purchases, credit facilities, dollar swap programs, and other quasi-guarantees would at least buy some reduction in vol. I suppose I could put on my pessimist’s cap and express amazement that it only “partially reverse(d)” the events of Q4 2008.
I wonder what the plan is should we experience another leg down in the credit markets.